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

UK 100 Index called to open -25pts at 7650, though it is off overnight lows of 7635, bouncing off intersecting support. Bulls need a break above 7660; Bears require a breach of 7635. Watch levels: Bullish 7660, Bearish 7630

Calls for a negative open come after Asian equities made for a mixed start to the week (Japan and Australia down, China positive) following President Trump’s latest threats to Iran, failure of the G-20 to resolve simmering differences over global trade and US Treasury Secretary Mnuchin reiterating the possibility of tariffs on all $500bn of China’s exports to the US.

In further blow to softer Brexit proponents (and the UK Index ), EU chief negotiator Michel Barnier has poured cold water on the latest UK Brexit white paper proposals on free access to EU market for financial services.

The USD is in the red versus GBP, bolstering the case for UK Index negativity, as investors flock towards the Japanese Yen, both for its perceived safety amidst trade war tensions and media speculation the Bank of Japan (BoJ) is ready to shift away from accommodative monetary policy.

Gold prices are flat. Oil prices are marginally lower, albeit still off the lows of last week, though the Trump-Iran Twitter spat may yet provide some support for black gold and, thus, UK Index Energy.

Corporate news this morning: Ryanair Q1 net profits -20% YoY, as guided, with revenues +9% (avg. fares -4%; ancillary +25%) and passengers +7% despite disruption; Sees fuel costs rising, bookings ahead of schedule but at lower average fares (+1% vs +4% prev); Unchanged FY guidance depends on disruption/Brexit; Ancillary rev growth strong, not enough to offset cost rises.

Hammerson disposes of Imperial (Bristol) and Fife Central  (Kircaldy) Retail Parks for £164m; 10% discount to Dec 2017 book value. BHP Billiton served with another class action suit, this time in Australia (US suit dates from 2016) relating to share price declines following Samarco dam failure.

Anglo American subsidiary Anglo American Platinum signs sale & purchase agreement with Glencore to purchase 39% interest in Mototolo JV. Anglo American Platinum reports interim EBITDA +70% on production +4% and costs -3%, ROCE 22% up from 9%.

Paragon Banking 9-month mortgage lending +6.7%, commercial +57.5%, net loan growth +17.3%; volume/cost guidance reiterated, Titlestone to improve 2018 group net interest margin slightly. Rolls Royce prepared to shut down small nuclear reactor project if government does not commit long-term with £20m financial support in coming months.

Late on Friday, Dow Jones reported that WPP may be in early talks with the likes of Alibaba and Tencent about selling a stake in its Chinese operations ($1.3bn revenues, 13K employees). The FT also reported Friday that GlaxoSmithKline has talked to major shareholders about the possibility of spinning off its consumer division within 2-3 years.

Data of interest today - another light one for macro-economic prints - includes the US Chicago Fed National Activity Index (1.30pm) forecast back positive in June, Eurozone Consumer Confidence (3pm) likely extending its downturn and, lastly, US Existing Home Sales (3pm) pretty flat for a third straight month.

The Bank of England’s (BoE) Broadbent gives a speech to the Society of Professional Economists in  London, the text being released at 6pm. Listen out for quarterly results from oil field services group Halliburton (11:45am) and internet giant Alphabet (9pm).

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