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

UK 100 Index called to open +50pts at 6870 thanks to an overnight rebound from 6800. This retraces much of yesterday’s losses but the rally has already been checked at 6870 due to a falling highs trend-line from last Friday which maintains the downtrend since last Thursday’s September peak. The Bulls will be looking for a challenge on 6880, hoping perhaps that the pause around 6865 is a bullish flag. The Bears will be hoping that the overnight rally reverses course. Updated watch levels: Bullish 6885, Bearish 6845.

A positive opening call comes as markets suggest victory for Clinton in the first of three US Presidential Debates. Not so much for her own performance, more because rival Trump failed to keep his cool and/or appear more presidential as many had expected . It’s still early days. Trump could be setting the bar low for the remaining face-offs. And he does have a bouncebackability that has already helped his campaign get within touching distance of the oval office.

Stocks in Asia are mixed overnight with Japan’s Nikkei struggling under the weight of a strong Yen, albeit off its best levels as safe-haven seeking eases on account of Trump’s performance ‘tempering’ gains and the BoJ minutes suggested inflation pressures waning again recently. Chinese equities are higher on news that official Industrial Profits growth hit the highest in almost 3-years (up almost 20% annually), suggesting recovery and buoying optimism.

Note, however, Australia’s ASX underperforming despite improved consumer confidence. The aforementioned China news would normally benefit the Aussie raw materials space given the nations’ strong trade links, however, a retreat by Gold in the wake of the US presidential debate is hurting miners of the yellow metal. Financials are lower in response to US sector weakness. Volatility in  oil prices ahead of the Algiers meeting also remains a hindrance for Energy names.

US equities trailed off towards the end of the session as investors reduced risk in the run up to last night’s Presidential debate, closing at session lows. Financials and Healthcare weighed down the rest of the market, with Goldman Sachs contributing the greatest losses to the Dow Jones after the Fed's Tarullo suggested he would seek more capital from the largest banks to help smaller peers.

After yesterday’s strong rally for crude oil markets, this morning’s trading remains somewhat subdued, with prices of Brent and US crude at the ceiling of a two and a half week narrowing pattern. Focus for oil traders will be firmly set on Algiers, where informal talks for a potential OPEC-led production freeze take place, although the outlook remains pessimistic that a deal will be reached on the side-lines of the International Energy Forum. Many don't see any real agreement until the next official OPEC meeting in November.

Gold is trading marginally lower this morning after the US Presidential debate last night was hesitantly called in Clinton’s favour, however it remains in a sideways trend between $1330 and $1345 for the third session in a row. The absence of a price rally after the debate suggested a win for the Democrats, as predictions that investors would buy the safe-haven asset given a Trump victory were not met.

In focus today will be the build up to this week’s unofficial OPEC-led production freeze meeting on the side-lines of the IEA forum in Algiers. Oil prices will remain volatile as energy ministers trade conflicting messages, some cooperative and some dismissive, of a deal being reached.

Macro data today begins with UK CBI Sales figures, followed in the afternoon by US House Price Indices, Service PMI figures and concluded with the Consumer Confidence Index for September and the latest month’s Richmond Fed Manufacturing Index, predicted to show the sector still in decline but with an improving outlook since August.

The headline speech of today will be from the German Finance Minister Schauble, particularly resonant given yesterday’s announcement from Chancellor Merkel that Deutsche Bank will not be supported by the government, prompting share price of the bank to reach record lows. Further speeches from the EU’s Moscovici in the morning and colleague Dombrovskis in the afternoon may provide further reaction, after which second-in-command at the US Federal Reserve Stanley Fischer will provide a question and answer session at the Howard University economic convocation.

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

• Mediclinic International says trading in-line with expectations
• Fire at Azeri oil field well extinguished - Azerbaijan's SOCAR
• United Utilities sees H1 underlying operating profit marginally higher
• Legal & General says retirement division on track to double new business sales in 2016
• Thomas Cook sticks to annual guidance
• boohoo.com sees full year revenue growth of 30 – 35%
• 3I Infrastructure on track to deliver FY dividend of 7.55 p/shr
• Card Factory announces special dividend of 15 p/share
• HSBC Holdings issues three fixed rate bonds in Japan
• UK's Close Brothers reports +4% in adjusted FY profit
• Legal & General says Toby Strauss to join board
• Acacia Mining says restarts operations at Bulyanhulu
• Wolseley to close 80 branches, one distribution centre in UK
• Qinetiq names outgoing Rolls – Royce director David Smith as CFO
• HMS Group board adopts new dividend policy
• Nickel falls for second day; Philippine mine projects in focus
• Oil prices slip on profit – taking as investors eye US stockpile data