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

UK 100 called to open flat at 6155, still in an uptrend from Thursday's post-Fed-minutes 6050 2-month lows but having found overnight resistance at 6165 just shy of Wednesday’s best levels. Potential for this to be a pause around 6150 before completing Friday’s bullish inverse head & shoulders reversal at 6185  and possibly retesting bugbear 6200 resistance before breaking out for a bullish triple-bottom that could complete above 6350. Watch levels: Bullish 6175, Bearish 6145.

The flat opening call comes Asia bourses struggle to emulate a positive US close  after weekend digestion of last week’s market-moving Fed minutes. These continue to hamper sentiment after suggesting June/July should be penciled in for a US rate rise, early than markets were pricing in. Note Bayer’s $62bn bid for Monsanto could re-inspire some market confidence along with Boeing winning a $11.3bn order for 100 planes.

Japan’s Nikkei in the red as a strong Yen weighs on exporters following a higher trade surplus (unexpected drop in both imports and exports in April) and despite a worsening in PMI Manufacturing contraction. Note Australia's ASX underperforming as dollar strength - albeit back from highs - holds back commodities, especially oil which looks set to retrace to its 2016 trend line of rising support to the detriment of refiners and explorers.

US bourses closed in the green on Friday with the Dow Jones remaining supported at the neckline of its 8-week bearish Head & Shoulders reversal pattern. Falling highs through April and May are keeping up the pressure, however, with a stronger US Dollar at the prospect of a June rate hike also hindering the index. Note also the possibility that rate hikes may be taken as a positive as well as the Fed’s Williams saying the US general election will have no bearing on central bank action (really?)

Crude prices have eased over the weekend after the Baker Hughes Rig Count stayed flat on Friday, indicating that supply continues to be a major driver for oil. While wildfires in Canada and political instability elsewhere have buoyed prices of late, there remains the ever present global oversupply issue. Of course, it’s still possible that the lows plumbed by oil earlier in the year were severely overdone. Note $50 still the major hurdle.

The Gold price is a slave to the USD, with recent strength in the latter coming on the back of more hawkish Fed commentary. Markets will be watchful of US macro data in the run up to the June FOMC meeting (consensus is that the data are improving). This week we’ve got Durable Goods Orders, Mortgage Applications and Jobless Claims (employment data is bound to impress) as warm up acts for the US GDP number on Friday.

In focus today will be the continued debate about whether the Fed is merely reining in complacency or is genuinely prepping us for another hike. Risk lies with markets merely reading water until Janet Yellen speaks at the end of the week. In the run-up listen out for musings from any Fed speakers, with Bullard, Williams and Harker chatting today.

In terms of data today, watch out for Eurozone and US PMI Manufacturing and Services seen advancing slightly in May while the Eurozone Consumer Confidence may improve a smidge on the prior month's negative reading.

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

• Aviva buys an extra 23 pct stake in India JV
• SSE and partners approve 2.6 bln pound Scottish wind farm
• UK's Mitie sees modest growth this year, announces 20 mln stg buyback
• Legal & General acquires £3bn uk annuity portfolio from aegon
• Stock Spirits says to hold AGM on Monday at 11:30am
• De La Rue says sells Cash Processing Solutions Ltd
• GVC Holdings signs 10 – year B2B platform licensing deal with Betfred
• Highland Gold Q1 production of gold and gold equivalents 56,889 oz
• BP's oil search strategy shrinks with budget cuts
• Ryanair to cut fares by 7 pct on average this fiscal year as competition grows
• Ryanair CEO says fares could fall even more than forecast