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

UK 100 Index called to open +25pts at 5980, having found support at 5870 and rebounding overnight from August rising lows. The bounce has seen us break above a two-day intersecting trendline at 5970 and back towards the recent breakdown at 6000. This offers the chance of a retrace towards May falling highs at 6250. Watch levels: Bullish 6005, Bearish 5960.

The positive opening call comes after Chinese equities rebounded further (albeit amid continued volatility), boosted by the removal of controversial circuit breakers which only served to make the first week of 2016 more troubled than necessary, being triggered twice in 4 days. State intervention to shore up equities, an extended institutional selling ban and the PBOC fixing the Yuan currency higher appeased those worried about continued devaluation and risk of currency wars to counter flagging growth. A calmer start to the week-end?

Asian stocks showing small losses, after a weak European and US close (Dow Jones had worst 4-day start on record; -5.2%). Volatility still very much prominent. Of note is weaker than expected German Industrial Production data for November this morning, at odds with strong Factory Orders yesterday, with the DAX index the weakest major index for 2016 so far (-7.1%). Can markets regain composure and buck the adage that suggests states that 'as Jan goes, so does the year'.

In focus today will be of course be December’s US Non-Farm Payrolls, although this shouldn’t prove as much a market-mover as last year. Why? The Fed has pulled the trigger and hiked rates, and is clearly more worried about absent inflation than much improved unemployment (even if low participation remains a bugbear) in terms of its trajectory for further rate rises. With that in mind, keep an eye on Wage growth for any welcome inflationary pressures.  

Thereafter, US Wholesale Sales and Inventories are seen remaining as Muted in November as they were in October. Fed speakers Williams and Lacker are sure to be listened to for signs of future Fed policy moves, given the recent mixed commentary, while the Baker Hughes Rig Count will offer an update on how operators are moving within the stateside hydrocarbon exploration space. Especially given the latest leg down by Oil. More or less rigs?

Oil off its very depressed lows (like the Dow, having its worst start to the year on record) is helping risk appetite while Gold pulls back to $1100 support after its recent breakout on geopolitical fears-led safe-haven demand, both commodities helped also by and a softer USD.

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UK Company Headlines: (Source: Reuters/DJ Newswires)

• XP Power expects further "modest" revenue growth in 2016
• Hammerson sells French retail park
• CRH says sold €1bn worth of assets in 2015
• Spire Healthcare sees 2016 revenue growth of over 3%
• Paysafe sees FY core earnings ahead of market expectations
• Crawshaw sees FY results in line with market expectations
• Nichols sees FY profit in line with market expectations
• Vectura completes clinical trial for asthama therapy
• Watchstone sells property and maintenance services businesses for 100p
• Brewin Dolphin expands executive committee in bid to grow assets