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

UK 100 Index called to open -40pts at 7665, testing recent support which could open the door for a retrace to late May lows. Bulls need a break above 7693 overnight highs, to regain the sideways channel; Bears require a breach of 7650 (Thursday’s spike lower). Watch levels: Bullish 7695, Bearish 7650

Calls for a negative open comes after broad losses in Asia and a mixed close on Wall St, where tech pulled back sharply - reversing some of their recent strength. Markets in tentative risk-off mode, troubled by the potential for of sparks to fly at this weekend’s G7 (or will it be more like G6 + USA) in Quebec, with President Trump holding firm on the issue of trade and tariffs.

With emerging markets (Brazil, Turkey, Argentina, etc) in turmoil over USD strength, rising interest rates and the spectre of a global trade war, investors continue to flock to safe US Treasuries.  Note oil prices back from overnight highs in spite of global supply concerns (Venezuela/Iran) and uncertainty over OPEC/Russia’s plans to curb their voluntary production cuts.

Safe-havens like gold are struggling, and USD strength hurting UK Index Miners, the hinderance on metals (Copper off highs) overpowering the benefit of a slightly weaker GBP  as uncertainty prevails about UK PM Theresa May and Brexit.

In corporate news this morning, BT CEO Gavin Patterson is to step down in H2, the board seeing need for a change of leadership. Lloyds Banking has sold its remaining 3.3% stake in Standard Life Aberdeen at 352.5p/share (3.2% discount to yesterday’s close), raising £344m. Takeda secures a heavily subscribed $7.5bn term loan credit agreement to fund portion of Shire acquisition.

Kaz Minerals sells 19.4% stake in Koksay Copper Project to China Nonferrous Metal Mining in return for $70m investment. Games Workshop growth mentioned in early May continued across all channels, expects FY sales and profits above consensus. Declares 30p Q1 div, +50% on last year. Hargreaves Services says trading been satisfactory, FY net debt likely to be higher; disposal of Brockwell Energy expected in next few months.

Synthomer says included in investigation by European Commission into practices relating to purchase of Styrene monomer by companies operating in EEA. Fastjet says audit process of FY financials still ongoing; to be published later this month. Amerisur Resources says continuing cycle of well work is frustrating; production impacted by treatment and maintenance, operations impacted by weather.

Fuller Smith & Turner FY Revenues +5%, adjusted profit +3%, div +4%; Current trading (9 weeks) strong in Tenanted Inns, good for Managed Pubs and Hotels, total beer and cider volumes flat.

In focus today - a very quiet one in terms of data - will be the BoE/TNS Inflation Attitudes Survey (9:30am), where those polled state the rate of inflation they expect over the next 12 months. The survey has plateaued at 2.9% over the last two reports (Nov & Feb) while inflation itself (CPI) has pulled back sharply, from a high of 3.1% in November to 2.4% in April.

This morning’s survey will thus be looked to for evidence of an easing in the inflation outlook, supporting the UK Central Bank’s recent decision to postpone an interest rate rise, the first now not expected until November (Bloomberg). Watch GBP and the UK Index .

Speakers today include ECB executive board member Mersch (8:15am, hawkish), giving a keynote presentation at the International Risk Management Conference in Paris.

Leaders of G7 major industrialised nations are gathering in Canada (Quebec) for a weekend summit likely to pit US President Trump against peers in another confrontation over trade, tariffs and protectionism.

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