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

UK 100 Index called to open +30pts at 7075, with the trend of rising lows since 7000 resistance-turned-support on Thursday still valid. An overnight test of Friday’s 7080 best levels adds weight to potential for a breakout and another attempt at all-time highs like we saw last Tuesday. Bulls are likely sitting tight for a breakout to 7090 while Bears keep an eye on rising support a 7040. Watch levels: Bullish 7090, Bearish 7020.

Calls for opening gains come after a positive start to the week in the Far East, albeit only Australia and China open. While the latter returns from a Golden Week holiday, note Japan joining the US on holiday meaning currencies holding sway on sentiment after last week’s excitement on sterling.   

A higher opening call for the UK Index is still, however, likely more due to persistent GBP weakness back below £1.24 giving internationals a translational gain after the USD rebounded from Friday’s Jobs report lows (not good enough for Nov rate hike). The latter may be failing to hamper metals prices but note Oil back from its highs, Energy name weakness countering Mining and Financial gains downunder. China playing positive catch up helped by positive comments from the PBoC.

Last night’s US Presidential Debate: Part Deux saw a more disciplined Trump in terms of delivery and temperament, but he didn’t shy away from harsh accusations of both his rival and her husband. His aim was clearly to deflect media focus about a 2005 video showing him making derogatory remarks towards women. But he seemed to land more punches than the first debate and while some may suggest a stalemate result, rebound in safe-haven Gold would suggest otherwise.

Some US markets are closed today for Columbus Day after Friday’s weak showing in the Jobs report saw a slightly weaker close. The possibility of a November hike from the US Fed declined, although Vice-Chair Fischer noted in the aftermath that the figures were reaching a ‘goldilocks’ number - not too hot, not too cold.

Crude Oil prices have weakened slightly after Friday’s Hughes Baker Rig Count showed a sixth weekly increase to an eight-month high. Ongoing meetings involving OPEC members, most notably Saudi Arabia, Iraq and Iran, with non-OPEC Russia on the side-lines of an Istanbul energy conference are likely to provide market movement today as they look to provide further measures to curb production.

Gold has made early gains this morning following last night’s US Presidential debate in reaction to a perceived stronger showing from Donald Trump. The $20 rally for the yellow metal suggests Trump as the winner in last night’s heated exchange. The improved performance for gold comes after it suffered its biggest weekly decline in almost a year, suggesting some investors may be eyeing a bargain after strong $1300 support was broken.

In focus today, with many US markets closed for the Columbus Day holiday, and amid a light macro-data line-up, will be the fallout from the second US Presidential Debate last night and the weekend’s IMF/World Bank meeting in Washington. Lots of harsh talks on banks and the risk of Trump rising a little.

Data-wise, pickings are thin, with just Eurozone Sentix Investor Confidence seen easing a touch in October, and so we may have to do with comments from the Eurogroup Meeting of Finance Ministers (anything on Brexit?) throughout the day and the ECB’s Praet and Villeroy after the European close.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.