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

UK 100 Index called to open -10pts at 6950, holding the mid-point on November’s falling channel, but with a bearish pennant breakdown in progress. Bulls need a break above 6985 to overcome the pennant, for a rally back to 7050. Bears require a breach of yesterday’s 6945 lows for further downside within the aforementioned channel, to October’s flirt with 2018 lows. Watch levels: Bullish 6985, Bearish 6945

Calls for a modestly negative open come amid lacklustre trading volumes with stateside investors still celebrating Thanksgiving and Japan closed for a Labour Day holiday. Australia’s ASX is positive, but note dual-listed Miners in the red due to falling commodity prices.

The Rest of Asia is mixed, with China dragged lower by more Tech sector weakness after online marketplace Meituan Dianping reported skyrocketing operating losses. The WSJ also reported the White House urging allies to stay away from China’s Huawei over cybersecurity concerns.

In corporate news today, BP marks first production at Clair Ridge (48.1% interest) in North Sea, it’s sixth new upstream project brought on-line this year, targeting 640m barrels, peak production 120K/day. Indivior says Health Canada approves SUBLOCADE injection for patients with moderate to severe opioid use disorder.

Interserve 9-month trading in-line, Fit for growth delivering savings; significant FY margin improvement expected, but net debt now seen £50m/8.6% higher, unwinding in 2019; deleveraging plan to be announced early 2019, options including new capital and more disposals.

Fuller, Smith & Turner H1 revenue +6% YoY, pre-tax profit -12%, dividend +3%, net debt +10.7%. Profitability impacted by investment front-loading, but which should deliver good Christmas returns.  FlyBe, which succumbed to financial strains last week, opens takeover discussions with Virgin Atlantic, according to Sky News.

Ibstock sells Glen-Grey US brick business for net $95m (8x EBITDA) after strategic review; proceeds to repay debt. UK maintenance program progressing well; Outlook positive despite Brexit uncertainty; Adj. EBITDA still expected £121-125m.

James Fisher 10-month revenue +14% YoY, with good Marine Support growth. Secured 3 contracts for London Array wind farm. Offshore Oil marginally better than expectations. FY outlook unchanged. Amerisur Resources enters $93.25m 2019-21 farm-out agreement with Occidental Andina across  Putumayo-9, Terecay, Tacacho and Mecaya blocks in Putumayo region, southern Colombia.

In focus today (quiet again for US Thanksgiving holiday), will be flash Eurozone PMI Manufacturing and Services (8.15am - 9am) with France expected to post a slightly weaker reading while Germany and the region show little change. In the afternoon, flash US PMI Manufacturing and Services are forecast flat for the former and slightly higher for the latter.

With Sunday’s EU-UK Brexit Summit back on after yesterday’s progress, any soundbites on remaining resolutions, be it actual progress or hopes thereof, as well as threats or actual spanners in the works, could keep GBP and thus the UK Index and its components on edge into the weekend.

In terms of speakers we have only the ECB’s Nouy (9am, European Banking Federation meeting) and ECB vice-President de Guindos at an awards presentation (12pm). Both are unlikely to talk policy and or move EUR currency crosses.

Note that the Bank of Italy also publishes its Financial Stability Report, which could impact Italian bonds and Bank shares given the volatility from the ongoing Rome/Brussels budget/debt stand-off.

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