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

UK 100 Index called to open +10pts at 7390 having thrice failed to overcome Wednesday’s highs of 7396, however rising lows support at 7385 has kept the index within touching distance of the key level. Bulls eye a potential double breakout, from yesterday’s 7396 and Tuesday’s 7405 resistance respectively, to return to last week’s 7445 highs. Bears, however, will hope that a fourth and final attempt of 7396 forces an eventual breakdown of rising lows support for a return to yesterday’s lows of 7360 or beyond. Bullish 7400, Bearish 7380.

Calls for a positive UK Index open come amidst a plethora of developing drivers. Overnight, Republican policymakers have attempted to distance themselves from President Trump’s threats to push the government close to shutdown in order to finance his proposed border wall.

While this has left the US dollar under pressure ahead of the opening day of the Federal Reserve's Jackson Hole symposium, Sterling is the notable underperformer in currency space, continuing to hover close to 8 year lows against the Euro (ex-October’s flash crash) and having traded a fresh 2-month low against the US dollar overnight.

This, alongside a Crude Oil rally ahead of the potential landfall of US ‘hurricane’ Harvey, which could render a third of US refineries out of action should it hit Texas, will likely benefit the overweight oil and foreign earning UK 100 , although note stocks going ex-dividend today include Carnival (31p), London Stock Exchange Group (14.4p), Mondi (17.4p), Paddy Power Betfair (65p) and Prudential (14.5p).

Asian equity markets are mostly lower as Hong Kong returns to action following yesterday’s forced closure due to typhoon Hato. Its Hang Seng index has turned negative after opening higher, with gambling stocks weighing as a result of the adverse weather. Australia’s ASX is the notable outperformer, trading higher as its earnings season continues, while Japan’s Nikkei underperforms on account of fresh Yen strength and Tech sector weakness.

US equity markets closed lower across the board yesterday as President Trump’s threats to shut down government plaguing market sentiment. Industrial and Consumer names bore the brunt of the sell-off, resulting in the Dow Jones closing almost 100 points lower (with Boeing and J&J weighing), while the S&P 500 also closed 0.4% offside and the Nasdaq finishing 0.3% weaker.

Crude Oil prices rallied early yesterday evening as a result of a drawdown in official US government inventories, while the potential for the tropical depression Harvey to develop into a hurricane threatening Texas oil refineries aids bullish sentiment. Brent crude rallied 1.7% to 2-week falling highs resistance at $52.5 while US crude rallied to $48.5, its highest level since Monday.

Gold remains hindered by resistance around $1292 resistance, however 2-week and 2-month rising lows support around $1285 and $1280 respectively remain valid. The Jackson Hole symposium could provide further drivers for the safe-haven asset in the form of emerging dovish or hawkish sentiment from the 3-day central bankers’ conference.

Whilst the Kansas’ Fed’s annual Jackson Hole symposium begins today, headline speakers ECB President Draghi and Fed Chair Yellen Janet Yellen are not scheduled to speak until tomorrow. As a result, the event in focus today will be the second estimate of UK Q2 GDP (9:30am) alongside June Index of Services prints and July Mortgage Approvals. Although no revisions to the first estimate are expected, the first estimate is based on only 45% of the quarter’s economic data. Will the additional information in today’s estimate prompt the ONS to make a change?

Also closely watched will be the CBI August Retail Sales (11am). While we may have noticed the weather taking a turn for the worse in comparison with the warm July, will this have filtered through into the high street? Expectations are for a lower reading compared with last month.

This afternoon, stateside construction firms will be hoping US Existing Home Sales (3pm) are not subject to the same fate as yesterday’s disappointing new build sales, while the Kansas City Fed Manufacturing Index (4pm) will look to provide a boost for the sector after yesterday’s disappointing PMI print.

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

• Utilitywise confirms group performed in line with expectations announced on July 31
• Dixons Carphone warns on profit on tough UK mobile market
• John Laing says NAV of £1.04bn June 30, reaches deal on Manchester Waste
• UK's Hunting posts much smaller loss, boosted by US shale demand
• Paysafe completes acquisition of MCPS
• Mckay Securities signs new £40m credit facility with Santander
• Playtech revenue rises on strong gaming division performance
• Britain's OneSavings Bank reports 20% jump in first – half profit
• Deltic updates on possible merger proposal with Revolution Bars
• Premier Oil lifts production guidance as fields exceed expectations
• CRH H1 earnings up 5% y/y, ramps up acquisition spend
• CRH sells U.S. distribution arm to Beacon Roofing for $2.6bn
• Wal – Mart's South African unit Massmart H1 profit up 2.4%
• Gold eases ahead of Jackson Hole central bankers meet
• Australia's metals and mining index hits 6-month high
• Oil steady after U.S. crude stockpiles drop; traders watch Gulf of Mexico storm