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

UK 100 Index called to open flat at 7700, holding an overnight bounce from 7682 that could lead to another test of yesterday’s 7716 highs resistance. 2-week rising channel still valid. Bulls need a break above 7715, Bears require a breach of 7682, if not 7670 rising lows. Watch levels: Bullish 7715, Bearish 7670

Calls for a muted open come after Tech sector losses on Wall St extended into a mixed Asian session, with Australia and Japan the lone gainers in the sea of red. The bank of Japan’s (BoJ) decision to allow more flexibility in its stimulus programme kept the Nikkei positive, however, China PMIs missed expectations (watch the Miners; they were up in Australia), with Manufacturing at its lowest since February, and Non-Manufacturing at its lowest since last August.

The UK 100 is further pressured by overnight UK GfK Consumer Confidence showing its lowest print since February. Both USD and GBP are flat ahead of Fed and the BoE monetary policy updates this week (Weds and Thurs, respectively) with gold likewise flat, risk appetite sufficient to snuff out safe-haven demand while Oil prices are lower on persistent global oversupply concerns.

UK Index is further pressured by overnight UK GfK Consumer Confidence showing lowest print since February. Both USD and GBP are flat ahead of twin Fed and the BoE monetary policy updates this week, with gold likewise sitting still. Oil prices are down on continued global oversupply.

In corporate news this morning, Banks may react to Standard Chartered H1 underlying operating income +6%, pre-tax +23% helped by impairments -50% and regulatory costs -9%, NIM +4bp, interim div resumed at 6c. Credit Suisse also reported its quarterly pre-tax profit in 3 years.

BP Q2 profits beat consensus, net debt falls, ups quarterly dividend by 2.5%; Sees Q3 production flat on Q2, expects lower refining margins and higher turnaround activity in H2. Glencore copper production +8% YoY (although sales lower), cobalt +31%, nickel +21%, zinc, ferrochrome and coal flat, oil -13%; guidance range narrowed, H2 weighted.

Just Eat H1 beats consensus; orders +30%, revenues +45%, underlying profits +12% (-3% incl. Hungry house acquisition); raises 2018 revenue guidance by 11-12%, but profit guidance unchanged (= lower margins), ups CAPEX. Travis Perkins sees 2018 profits at lower half of consensus.

Dixons Carphone says 2017 data breach may have affected 10m personal data records, worse than the 5.9m card details and 1.2m personal details it said June. Imperial Brands sells 13.3m Logista shares for £235m, proceeds to reduce debt.

Centrica H1 margins stable, on track for all FY financial targets, expects to maintain 12p dividend, even after cash flow -11% (FY still seen higher) due to higher commodity prices, extreme weather, competitive pressure and both political and regulatory uncertainty. CFO standing down.

Fresnillo H1 adj. revenues +11,3%, EBITDA +8.5%, profits -26.1% (impacted by FX and inflation on deferred taxes), silver production +9.7% YoY, gold +4.4%, dividend +0.9%. Confirms recently revised production outlook (gold production guidance increased, silver production guidance reduced.

Taylor Wimpey H1 pre-tax profit +46.8% (-1.2% pre-exceptional items incl. replacement of ACM cladding). Expects completions to be H2-weighted due to H1 weather), on track for FY construction guidance. Also confirming 2018 build cost increase guidance circa 3-4%.

Rentokil Initial H1 beats medium-term targets. Organic ongoing revenue +3%, affected by disruption in Puerto Rico following Hurricane Maria. Dividend +15%, FY guidance unchanged. Weir Group H1 like-for-like rev. +23% YoY, pre-tax profit +47%, orders +20%, trading in line with guidance, FY profit expectations unchanged.

In focus today will be Eurozone Q2 GDP and July Inflation (both 10am) for their read-across to both corporate growth and, of course, ECB policy. Whilst the former may deliver slower growth (2.2% YoY vs 2.5% prev.) Core Inflation may improve to 1% from 0.9%, back at its Q1 average, albeit still slower than the ECB’s hitherto elusive circa. 2% target.

This afternoon US Personal Income and Spending (1.30pm) are good proxies for consumer confidence, especially with economists forecasting the former to hold firm while the latter accelerates. PCE inflation metrics are seen staying around levels conducive of the Fed’s interest current rate hiking cycle.

US House Price growth (2pm) is expected to have remained solid in May, albeit slightly slower, while the Chicago PMI (2.45pm) pulls back from 2018 highs and Consumer Confidence (3pm) itself holds firm, the last piece of macro data before tonight’s API Oil inventories (9.30pm).

Big name US corporates updating today include Pfizer (11.45am), P&G (midday), Anadarko Petroleum (9.10pm) and Apple (9.30pm).

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