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

UK 100 Index called to open flat at 6900 after positive performances in Asia overnight and the US on Friday, although is likely to experience early morning movement as a result of UK Prime Minister Theresa May’s announcement that she would trigger the process of leaving the EU, Article 50, by the end of March 2017. The Bulls will be hoping to continue to build on Friday’s momentum and look to challenge resistance at 6950, whereas the Bears will be hoping for a breach of three-week rising support and head back towards September lows of 6640. Updated watch levels: Bullish 6950, Bearish 6825.

A flat start comes after a report released Friday suggested a significant decrease in the fine from the US Department of Justice for Deutsche Bank that had incited fears about the financial stability of the German powerhouse. However, this is likely to be overshadowed in the UK by the PM’s announcement of the March 2017 target to trigger Article 50 and begin the process of leaving the EU. While no explicit indication of whether this will entail a ‘soft’ or ‘hard’ exit from the EU was given by Mrs May, commentators believe hints of a full exit from the European Single market.

Asian equities echoed the positive performance from US equities on Friday as the outlook for Deutsche Bank improved aftert reports of a reduced fine from the US Department of Justice. Macroeconomic data from across the region showed improving economic climate.

In focus today is European Manufacturing PMI data, beginning with data from Spain at 8:15am, followed by Italy, France and the headline Eurozone figures before being concluded by the UK at 9:30am. Continental Europe is expected to post improved figures whilst the UK is expecting a slight decline, although remaining expansionary. In the afternoon, the US releases Manufacturing PMI at 2:45pm before concluding today’s macroeconomic data with Construction Spending and ISM Manufacturing at 3pm.

The release of the official Bank of England FPC meeting minutes at 9am is likely to be overshadowed by the continuing Conservative Party conference, and the first speech from the new Chancellor of the Exchequer Philip Hammond, with hopes of further details regarding Britain’s exit from the EU.

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

• Deutsche Bank race against time to reach U.S. settlement
• Genel Energy notes KRG's July payment on Tawke field
• National Grid says Massachusetts rate case hikes bill by 7%
• Morgan Sindall Group names Michael Findlay as chairman
• Plus500 says gets operating licence in New Zealand
• James Halstead says doubts over Brexit impact lessening
• OPEC oil output hits record on Iraq, Libya boost – Reuters survey
• Copper near 8–week high after China PMI in holiday – thinned trading
• Aker BP to buy Norway licenses from Tullow
• Lender Paragon to buy asset finance brokerage Premier Asset Finance
• Lamprell says new CEO takes up his role
• UK's Weir Group names John Heasley as CFO
• AstraZeneca licenses inflammatory disease candidate to Allergan
• Intertek acquires Canada – based cyber security assurance unit
• Interserve wins £7.5m cleaning contract with SSE and SGN
• Anglo American receives cash proceeds of $1.7 billion for the completed sale of Niobium and Phosphates businesses