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

UK 100 Index called to open +35pts at 7010, back on the front foot above the 7000 point mark having bounced from yesterday’s lows of near 6925, breaking out of the downtrend that started on Tuesday.  Bulls will be hoping once again that the 7000 mark holds with support from 1 month rising lows helping it to close up for the week, while Bears yet again will be looking for a breach of the 7000 barrier that will see the index back down to the low 6900s. Watch levels: Bullish 7025, Bearish 6980

Calls for a positive open come as more overnight China data influences the European open once again. An increase in PPI and the highest CPI reading for the Chinese economy in five years has seemingly offset the negative export data reported in the early hours of Thursday morning, with a further strengthening of the USD and increased Crude Oil prices (despite a reported inventory build) also helping the UK Index regain a foothold above 7000. Note, however, the reporting of Q3 earnings by US financial heavyweights Citigroup, JP Morgan Chase and Wells Fargo around lunch time may have implications for their counterparts in London, with expectations for lower readings in comparison to last year.

Overnight in Asia, Japan’s Nikkei index closed 0.45% higher as the Yen weakened against the USD, giving a boost to export stocks, most notably car manufacturers. Australia’s ASX closed marginally lower, only 0.03% down, despite losses for the key Materials and Financial sectors as the RBA released a positive Financial Stability Review stating resilience in Aussie banking.

US equities finished trading hours lower but managed to recoup early losses. Energy pared losses thanks to a gain in crude oil prices while Financials began pricing in before the highly anticipated Q3 earnings figures released today.

Crude Oil prices are looking to finish positive for the week despite DOE EIA Inventory figures showing a larger than expected build yesterday. The initial drop in prices was offset by a sharp drawdown in gasoline and diesel, providing a whipsaw for prices that has carried momentum into this morning. However, the Baker Hughes Rig Count this evening could spoil the positive end to the week. Gold remains in a tight $1250-$1260 channel after nursing slight losses overnight attributed to a strengthening of the USD.

In focus this morning, UK Construction output figures, expected flat month on month, could provide another boost to yesterday’s outperforming Housebuilding sector.

The afternoon sees a multitude of US data released, with headline Retail Sales Advance figures at 1:30pm alongside various PPI indicators all expected to show an expansion. The University of Michigan sentiment for October is predicted to increase when announced at 3pm, with a simultaneous release of Business Inventories figures before the week’s macro data is rounded off with the Baker Hughes Rig Count. The US data may move FX markets once again should expectations be exceeded, whilst a low Rig count may see oil end a particularly volatile week surprisingly flat.

A busy afternoon for US and UK central Bank policy makers is headlined by Bank of England Head Mark Carney alongside his deputy governors speaking at 2:30pm, with his US counterpart Janet Yellen speaking for the first time since the FOMC minutes release after European close at 6:30pm. Other speakers of note include the BoE’s Forbes, the Fed’s Rosengren and the German finance minister Schaeuble.

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

• Vinci Construction wins the contract to renovate the Mandarin Oriental Hotel in London
• Hedge fund Man Group's assets +6%, buys real asset manager
• Man Group buys Aalto and launches global private markets business
• Inland Homes says sales continuing at normal rate post Brexit
• Emerging fund firm Ashmore says flows flat during Sept quarter
• Ashmore assets under management rise by $2.0bn in Sept quarter
• Provident Financial Q3 profit performance in line with internal plans
• DCC acquires specialist server company Hammer for £38m
• Shell's Philippines unit prices up to $404m IPO at high end of guidance
• Standard Chartered receives approval to issue SDR bonds in China
• Deutsche Bank execs say outflows from wealth management unit not significant
• Aussie copper miners extend fall on China growth woes
• International oil prices dip on production cut doubts
• London copper hangs near one – month low, zinc sinks