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

UK 100 Index called to open -15pts at 7040, maintaining this week’s sideways movement, though supported by week-old rising support. Bulls require a break above 7080 overnight highs to attempt another challenge of October highs. Bulls requires a breach of 7025 rising support. Watch levels: Bullish 7080, Bearish 7000

Calls for a negative open come after turbulent trading on Wall St and in Asian markets after a release of hawkish Fed minutes that laid the groundwork for further interest rate hikes in the US. China was trading lower despite evading being named a “currency manipulator” in the latest US Treasury Dept report, which was seen as restrained move in the US-China trade war. Trump sent more mixed messages, though, exiting a 144-year old postal treaty with China that benefited Chinese retailers.

PM Theresa May is reportedly considering staying tied to EU rules beyond 2020 transition period in order to break the deadlock in Brexit negotiations, in a move that is sure to infuriate Tory Eurosceptics.

In corporate news this morning, Unilever reported Q3 underlying sales +3.8% YoY, but turnover -4.8%, impacted by FX headwinds of 5.2%. Growth seen across all divisions. FY underlying sales growth guidance maintained in 3-5% range, while guidance for operating margins improved.

Takeda Pharmaceutical received approval from Japan's Fair Trade Commission to acquire Shire.

GVC Q3 total net gaming revenue +14% YoY, online +28% YoY (thanks to good World Cup end), UK retail -2%, Euro retail +24%. Trading in-line. Rob Wood (ex-Ladbrokes Coral CFO) appointed new CFO. Integration of Ladbrokes Coral progressing well. Remains confident in achieving FY targets.

Rentokil Q3 ongoing like-for-like revenue +11.8% YoY (+4.1% organic), pest control +11.4%, hygiene +22% (+2.8% organic) due to acquisition of Cannon Hygiene Services and CWS Italy. Remains on track to meet FY expectations.

CMA finds that Rentokil Initial's purchase of Cannon Hygiene could lead to higher prices and is inviting comments until 8 nov.

Domino's Pizza Q3 group organic sales +6% YoY, UK/Ireland +6.1%, international +5.8%, 23 new stores opened in Q3. £50m buyback completed, further £25m buyback to commence immediately. FY underlying pre-tax profit expected in the middle of the range of £93-99.6m market consensus.

Rank Group Q3 like-for-like revenue -7.2% QoQ, digital +1.7%, venues -6.1% (Grosvenor Casinos rev. -7.2%, driven by a reduction in handle and margin from high spending customers). National Express Q3 like-for-like revenue +8.9% YoY, pre-tax profit +10.7%. Renishaw Q3 revenue +8% YoY, adj. pre-tax profit -9%, remains confident in future prospects.

In focus today will be the UK’s Retail Sales (9:30am). Market currently expects stronger sales figures in September (est. 3.6% YoY against 3.3% prev.), potentially benefiting UK Index ’s Retailer shares. In the US, the Philly Fed manufacturing index (1:30pm) is seen easing slightly in October from a tough September comparable.

In speakers, keep an eye on the high level European Council meeting in Brussels throughout the day, as well as remarks from Fed’s Bullard (2pm, non-voter, dovish) and Quarles (5:15pm, voter, hawkish), whose comments could touch on monetary policy and move USD (with potential knock-on to UK Index ).

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