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

UK 100 Index called to open -30pts at 6320, having made two valiant attempts yesterday to push up towards week highs 6400. Hopes this week’s falling channel will serve as consolidation ahead of further recovery off late Sept lows fading, although encouragement could come from 6320 acting as support. A break below this level, however, could see continued pull back to 6300, with bears likely to jump in. Watch levels: Bullish 6400, Bearish 6200.

The bearish opening call for Europe comes as markets try and determine the mood surrounding today’s ECB rate announcement, with many expecting an extension of Eurozone QE, but how will Draghi signal it? Eurozone officials keen not to spook European markets with any suggestion of lacklustre economic health such that markets are wary this morning.

US Bourses down at last night’s close, Health-care stocks weighing on broader market with big losses for Valeant Pharma following a short selling attack by research firm Citron. Earnings also remain in focus:  good gains for General Motors after positive Q3 numbers while Boeing and Coca-Cola also impressed. However Amex numbers came in below forecasts as the payments processor struggles with competition from fresh-faced start-ups.

FOMC in blackout period ahead of next week’s meeting.

In the UK, note Chinese President Xi held a press conference with UK PM Cameron shortly after the European close in which he noted that emerging market economies are facing a slowdown, adding however that they are still enjoying sound economic fundamentals with China’s 7% growth rate safe.

In focus today we have UK retail sales at 9.30 seen picking up in Sept – could move UK Index retailers and supermarkets – while the main event is lunchtime’s ECB rate decision, which will be watched carefully for pointers on the health of the Eurozone and prospects for extended QE. This afternoon sees US employment data also looking positive, though note the FOMC is blacked out so beware of speculative market volatility in the aftermath.

Gold near week lows, few drivers identified  with US Fed rate hike uncertainty plugging the hole for what it’s worth. A firming US dollar basket moving upwards within a 2-month shallow falling channel looks to be the most likely culprit. ECB announcement could dictate safe haven demand while more technicals on the dollar could boost the yellow metal today.

US crude oil futures benefitting this morning from bottom picking after settling down on a larger than expected US inventory build yesterday. Brent following similar pattern, both have strong support lust below current levels.

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

• Segro says remain optimistic about FY performance
• Monitise non – exec directors Tucker and Garafalo to step down
• RELX reiterates outlook after strong Risk unit growth
• Workspace announces disposal of industrial estate for £23mn
• Debenhams CEO Sharp to step down in 2016
• Funds managed by Advent agree to sell 15% stake in DFS Furniture
• SIG sees FY underlying profit before tax betwenn £85 – £90mn
• Clay – bricks manufacturer Ibstock says IPO priced at 190p/shr
• Russia's Mail.ru says Q3 revenue up 13% y/y
• Travis Perkins sees year earnings at lower end of market view
• Debenhams year profit up 7.3%
• Zoopla sees revenues up as agency numbers rise
• Foxtons says central London property market will take time to recover
• London Stock Exchange Group's Q3 revenue rises 12%
• Anglo American Q3 production rises 2%
• Phoenix Group says on track to deliver 2015 cash generation target
• GKN sticks with forecast for growth in 2015
• Monterey makes agreed cash offer for rest of Infinis Energy