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

UK 100 Index called to open +25pts at 6980, with an overnight bounce from 6930 lows helping deliver a breakout beyond 5-day falling resistance. Breakout from a  bullish falling wedge opens the door to a rally back to recent 7070 highs, possibly even 7135 all-time highs. Bulls will be looking to clear yesterday’s 6985 highs to confirm the breakout while Bears keep watch for suggestions of this merely being a fake-out. Watch levels: Bullish 6990, Bearish 6955.

Calls for a higher open come in the wake of a breakeven US close and a largely positive session in Asia. Investors are digesting the first of a handful of monetary policy updates (BoJ, RBA), improved China PMIs (Manufacturing + Services) suggesting further signs of stabilisation and an oil price off its lows. All this ahead of the Fed and BoE this week and US election next week. Busy, busy.

Japan’s Nikkei is just positive after the Bank of Japan (BoJ) left monetary policy unchanged but cut its inflation forecasts. A flat Yen currency has neither helped nor hindered exporters but an edging back in PMI Manufacturing may have dented sentiment. Australia’s ASX is the standout underperformer, in the red, despite positive China data and a stronger Aussie Dollar after the RBA held policy, although the Melbourne Cup potentially drew many a trader's gaze from the markets overnight.

US equity markets finished Monday’s trading session mostly flat, as investors becoming increasingly tentative with the narrowing race for the Presidency just one week away. The Dow Jones posted its narrowest trading range in almost two months to close 0.1% lower, with the S&P 500 and Nasdaq both closing roughly 4 points lower.

Crude oil prices have bounced from one month lows as yesterday’s reaffirmation of long-term strategy by OPEC officials is warmed to by investors. Warnings from Goldman Sachs that crude prices could fall below $40 a barrel should no production deal between OPEC and non-OPEC producers take place come as the first ‘real’ achievement from the weekend’s talked in Vienna helped stop the slide that has taken Brent crude below $50 per barrel. However, with producer divisions regarding a potential cut still obvious and record production continuing, how long can this respite last?

The price of Gold has been boosted overnight by those strong China figures, as the yellow metal challenges resistance at the upper boundary of its 4-week uptrend. The highest official and private PMI Manufacturing figures in two months has boosted commodities space as the world’s second largest economy shows signs of improvement.

In focus today - UK PMI Manufacturing for October is seen pulling back to 54.5 from September’s best level (55.4) since June 2014. Has it peaked after only marginally improving on Oct 2015 (55.2)? Thereafter it’s slim pickings until a forecast slowdown in August Canadian GDP growth (0.2% month-on-month v 0.5% in July).

In contrast, south of the border, US PMI Manufacturing is seen confirmed improving in October (53.2 vs 51.5), while ISM Manufacturing edges up (51.7 v 51.5). ISM Prices Paid may, however, offer the Fed some inflationary hope with a welcome jump (53.0 to 54.3).

September US Construction Spending is seen rebounding (0.5% vs -0.7%) after a poor summer, but US IBD/TIPP Economic Optimism (48.0 v 51.3) may give up all of last month’s surprisingly sharp gains (51.3 vs 46.7) to return to its 18-month mean.

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

• UK insurer Hastings gross written premiums rise
• Weir sees FY profit slightly lower than market expectations
• BP names Nils Smedegaard Andersen as non – executive director
• BP beats quarterly earnings estimates, trims spending
• Glencore to restart Australia coal mine as prices surge
• Moneysupermarket.com's insurance growth keeps it on track
• Virgin Money's 9 – month gross mortgage lending jumps 19%
• Shell reports 18% rise in quarterly profit, beating forecasts
• Royal Dutch Shell 2017 capital investment expected to be about $25 bln
• Irish Central Bank fines Ulster Bank for money – laundering failures
• Phoenix Group completes acquisition of AXA business
• Go – Ahead sticks to outlook despite Southern strikes
• Oil prices rise from one – month lows after OPEC approves strategy