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

UK 100 Index called to open +10pts at 5684  with an impressive 180pt overnight rally from new 2-yr lows and round number 5600 yet again selling off. With the index having briefly broken below the floor of its falling channel and failing to hit the ceiling on the bounce, there is potential for the downtrend to steepen, while another bounce likely to find resistance at or near 6000. The 100-day MA just looks miles away. ‘Sell any rally’...! Watch levels: Bullish 5935, Bearish 5590.

The lukewarm opening call comes after Asian bourses attempted to regain some poise overnight - Japan’s Nikkei having retreated into bear market territory the day before and that hideous performance on mainland China no doubt encouraging bargain hunters into the fray. Note Asian indices failing utterly to claw back those losses.

The Dow Jones just about managed to steer clear of breaking its own Aug 2015 lows with its own late surge failing to push it back into the green for the day. That bounce continuing to be retraced in futures trading - like the UK Index .

The driver remains volatility in oil prices with market rallies being largely attributed to the tiniest of bounces (less than a dollar a time) in the prices of Brent and WTI. The fact remains, however, that the down moves are bigger than the up moves for Oil, or it wouldn’t be in a downtrend. Incidentally, the IEA has said that the world is at risk of drowning in oil following the return to market of Iran.

While safe havens Gold (still in its 2016 rising channel, now above $1100) and  the Japanese Yen (117 to the dollar) took a little hit, both are again strengthening this morning as hope fades (it was blind anyway) and the ‘nothing’s changed’ thoughts seep back in. Yen strength from safe haven demand naturally adding to the pressures on the Nikkei too.

In corporate news, note BHP Billiton (BLT) signalling yesterday that a cut to its long-protected dividend may be necessary (shares hit a >10-yr low afterwards). Precious metals miner Fresnillo (FRES), meanwhile, surpassed estimates with its production report. One to watch given the gentle move into Gold at the moment.

In focus today we have the ECB rate decision at 12.45 with no change expected - however note the small potential for Draghi and his gang to surprise/annoy markets that are desperate to be distracted. Later on, from the US, we get Philly Fed manufacturing and employment data all seen improving. Crude and related inventories (and no doubt some oil price volatility) round off the day.
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UK Company Headlines: (Source: Reuters/DJ Newswires)

• Land Securities Q3 retailer sales up 1.2 pct on a same centre basis
• Monitise sees H2 EBITDA to be positive
• Pearson to cut 4,000 jobs, hold the dividend due to weak earnings
• N Brown says on track to meet full – year expectations
• Laird FY revenue rises 12 pct to 630 mln stg
• Alliance Pharma sees revenue for 2015 to be more than 10 pct higher
• Royal Mail on track to deliver cost cuts after strong Christmas
• Countrywide says now expects underlying EBITDA for 2015 to show modest improvement
• SABMiller posts better – than – expected 7 pct rise in third – quarter sales
• James's Place says Q4 net inflows 1.63 bln stg