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

UK 100 Index called to open -5pts at 7405, back from an overnight flirt with the 7425 highs of late last week, but equally holding above 7400 following a brief test, to maintain rising lows support since early last week. Bulls need a break above 7410, Bears a breach of 7395. Watch levels: Bullish 7410, Bearish 7395.

Calls for a slightly negative open come after weakness in Asia overnight, China equities turning lower again, led by financials. This is driven by concerns about rising yields (multi-year highs) amid a bond market sell-off that is likely to raise re-financing costs in an already over leveraged economy, putting pressure on both corporates and consumers, reviving the China credit bubble story.

Japan in the red on account of a stronger Yen as the USD remains depressed. Australia’s ASX sees materials underwater as metals prices make a poor start to the week, offsetting buoyancy among financials. Note Bitcoin at fresh record highs, knocking at the door to $10,000, up a cool 890% year-to-date, while Oil may be off recent highs, but holds firm ahead of another key OPEC meeting (Thurs).

In corporate news this morning AstraZeneca submits new drug application (NDA) in Japan for Tagrisso, for non-small cell lung cancer (NSCLC). United Oil & Gas takes 20% Stake in Tullow Oil's Walton-Morant License. BowLeven Chief Operating Officer David Clarkson resigns.Pearson sells Wall Street English for $300m.

US equity markets closed higher on a Thanksgiving-shortened Friday session, with both the S&P 500 and Nasdaq indices closing at record highs. The Tech-focused Nasdaq outperformed on ‘Black Friday’, as a 2.6% rally for Amazon also aiding the S&P. The 30-stock Dow Jones also finished higher as UnitedHealth and Visa contributed the most gains, offsetting Caterpillar weakness.

Crude Oil benchmarks are edging away from Friday’s highs as hedge funds become more tentative about an OPEC/non-OPEC production cut extension deal being reached on Thursday, echoing May’s meeting, where prices rallied 10% into the meeting before falling after an announcement was made. Brent Crude is trading around $63.75 having failed to reach $64 on Friday, while US crude is retreating from Friday’s fresh 29-month high of $59.

Gold is attempting to overcome Friday’s highs in order to make a fresh challenge of 2-month falling highs resistance around $1295. Having traded an overnight high of $1291, the precious metal has since retreated to, and bounced from, $1289.5 support. The US dollar will likely drive sentiment this week as Fed Chair nominee Powell and current Fed Chair Yellen face the Senate Banking Committee in Washington over the coming days.

Today’s focus may in fact be geopolitics than data with the situation in Germany slightly improved vis-a-vis grand coalition talks, but worse in terms of Irish governmental stability and potential Brexit fallout.

Data-wise, October US New Home Sales (3pm) are forecast sharply lower, normalising from September’s spike to the highest since late 2007 following a weather-impacted September.

The November US Dallas Fed Manufacturing (3.30pm) may also pull back from October’s best since early 2006, but note Philly, Kansas and Empire all disappointed in November, only Chicago surprising to the upside.

Speakers today are limited to the Bank of England’s Andy Haldane (2.30pm) speaking on the Bank’s education and communication strategy at a Birmingham school (text to be released).

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