Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

UK 100 Index called to open -35pts at 7385 after breaching overnight support at 7400. Bulls need the level to be regained for any hopes of recovery. Bears are eyeing a retrace to intersecting rising support at 7350. Watch levels: Bullish 7400, Bearish 7380

Calls for a negative start come after a mixed US close that flowed into Asia overnight ahead of Thanksgiving holidays in the US and Japan. Fed minutes merely supported market expectations for a December rate rise, albeit with concerns about low inflation not just being transitory. This sent the USD lower and thus the GBP and EUR higher to dent UK Index and DAX futures.

Sentiment in China dented by Beijing halting approvals for all new online lending companies to curb credit bubble. Australia’s ASX saw gains for Energy (oil holding up well) and Materials (weaker USD helping metal) offset by losses for Financials (weaker US dollar sent Aussie cousin higher).

In corporate news this morning include Gem Diamonds announces recovery of a high quality 202 ct, D colour Type IIa diamond from the Let eng mine in Lesotho, its 7th >100ct find this year. Mothercare seen recent softening in UK market with lower footfall and spend, international markets remain challenging, especially the Middle East. Ophir says Fortuna financing discussions with Chinese banks taking longer than expected, alternative options at advanced stage, hopes to select by year end.

CMC reports net operating income +19%, profits +58% and revenue per active client +22%. Mitchells & Butler says cost headwinds hit margins. GSK submits impact data for Ellipta for COPD. Severn Trent reports H1 revenues +3.7%, underlying profits +4.4% and dividend +6.2%. Centrica says on track to hit 2017 group outlook despite tough H2, lost 823K customers, may accept lower dividend cover

US indices finished mixed before closing for Thanksgiving, with the Tech-focused Nasdaq being the only index to close at a fresh record high thanks to a 1% jump for Amazon after reports it is to enter into the Healthcare sector. The Dow Jones retreated 65 points from record highs as Fed minutes highlighted concerns about the impact of the stock market rally on the wider economy, while Financial and Real Estate names weighed on the S&P 500 as the index closed just shy of breakeven.

Crude Oil prices remain close to yesterday evening’s highs as the US EIA reported falling inventories, confirming the previous day’s API report, however investor focus will now likely turn to next week’s OPEC/non-OPEC meeting. With more non-members being invited to the meeting, where further production cuts will headline the agenda, Brent Crude has held close to 1-week highs above $63 while US Crude trades within $0.3 of yesterday’s 29-month high of $58.15.

Gold has retreated from weekly highs after the FOMC’s November minutes highlighted concerns that low inflation could be around for longer, despite most policymakers backing calls for a December rate hike. The precious metal traded just shy of $1295 an hour after the release as the US dropped to a 1-month low, however has since fallen to overnight lows of $1289. Further dollar weakness could raise the case for a return to yesterday’s highs.

In focus today - quietened on account of the US Thanksgiving holiday - will be the second estimate for UK Q3 GDP (9.30am) in light of yesterday’s UK Budget and downgrade to growth forecasts. Consensus is for a slight improvement in the quarterly rate (0.4% vs 0.3% prev), but for the annual pace to remain stuck at 1.5%, lowest since Q1 2013. CBI Retail (11am) figures may also show a strong improvement that would help UK Index retailers.

Thereafter, Eurozone PMI Manufacturing and Services (8-9am) may show small down ticks for France from recent highs. Germany is expected to report Manufacturing holding near 6yr highs and Services in the middle of its 2017 range following last month’s pullback. The aggregate is for the Eurozone to hold firm around last month’s prints, like Germany, with Manufacturing near 6yr highs and Services in the middle of 2017’s range.

ECB Minutes (12.30pm) will be scrutinised less for policy hints - we have already had the news on QE tapering - more on how strong consensus was for this latest major policy decision. This could move the EUR and DAX, along with comments from the ECB’s Praet (8.30am), Villeroy (12pm and 6.30pm) and Coeure (6.15pm).

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