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

UK 100 Index called to open -15pts at 6790, with yesterday’s 160pt Clinton-in-the-clear rally running out of steam overnight at 6820. The fact it has been sent back twice to test 6800 overnight means falling highs resistance around 6810. Bulls will want to see overnight highs of 6820 cleared for evidence the bounce might have legs. Bears will want to see lows of 6795 give way to open the doors for a retrace to 6715, at least. Watch levels: Bullish 6825, Bearish 6785.

A negative opening call comes as no surprise with US voters heading to the polls for what is the most difficult to call and controversial stateside presidential race in history. Asian markets have struggled for traction overnight, unable to build on Monday’s gains, with momentum fading. Memories of a surprise Brexit result are too fresh to ignore at this late stage and polls so tight.

Even less bad China trade data isn’t enough to overpower the political risk that financial markets are facing over the next 24 hours. Surprisingly poor September German Industrial Production growth won’t help Eurozone sentiment, although UK BRC Retail Sales figures continue to dispel Brexit fears, growth accelerating in October.

Asian and Aussie equities are flat with the former hindered by the Yen coming off its lows on safehaven demand while the latter is suffering from a softening in Business surveys and traders ignoring that less bad China trade data, maintaining focus on stateside politics.

US equity markets closed yesterday having enjoyed the strongest day of trading since March. The Dow Jones rallied over 300 points on the news of Clinton’s second all-clear from the FBI, while the S&P 500’s 2.2% rally may be a foreshadowing of what a Democratic victory overnight could mean for markets on Wednesday.

Crude Oil is trading sideways, the Clinton rally of yesterday exhausted as investors once again look towards OPEC’s ongoing calamitous negotiations for a production cut in November as well as tonight’s election result.

Gold on the other hand has bounced off overnight lows as investors look to hedge against a Trump victory in the US election, despite Clinton maintaining a narrow lead in the polls. This suggests a more careful line is being tread before the election than before the surprise Brexit vote in June, with investors looking to avoid the negative implications of a surprise vote for Trump on equities.

In focus today away from a minor political event across the pond is UK Industrial and Manufacturing growth for September, released at 9:30am this morning.

We’ve already seen Germany disappoint on the industrial event this morning and a mixed picture is anticipated from the UK. Whilst Industrial Production is seen improving annual growth by a touch, it remains weak compared to the April-July period. On a monthly basis growth is seen stagnant, emphasising a sluggish Summer. On the Manufacturing front, annual growth is seen falling negative for the first time in 6 months despite the monthly growth accelerating.

Across the Atlantic, US NFIB Small Business Optimism at 11am is forecast to show no change in October from the previous month while Jolts Job Openings consensus is for a marginal increase for September, showing corporate optimism remains in the US. Finally, the NIESR GDP estimate for the UK at 3pm will be keenly watched by Brexit commentators for any deviation from the official figures released a fortnight ago.

The meeting of EU Finance Ministers in Brussels this morning is likely to provide yet another layer of Brexit rhetoric to the already mounting pile, whilst speeches come from the EU’s Juncker, BoE Chief Economist Haldane and the Fed’s Evans offering a double helping over the course of the day.

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

• AB Foods Reports 3% Rise in FY Adjusted Operating Profit
• Marks & Spencer Plans Store Closures After 1H Profit Drops 90%
• Direct Line posts above – forecast rise in 9-mth premium +4.2%
• RBS announces £400m fee refund programme for small businesses
• RBS launches a new complaints process, fee refunds for GRG customers
• Primark owner AB Foods sees potential Brexit benefit
• Paysafe sticks by full-year adj EBITDA forecast
• BBA Aviation says trading remains in-line with expectations
• Imperial Brands FY Net Profit Falls, Plans More Investment
• BHP loses 3 weeks copper output due to blackout – executive
• Aldermore says non-exec chairman Glyn Jones to resign
• Vodafone Qatar's loss narrows as it cuts low – margin services
• Airbus Helicopters confirms Singapore order
• Dyson eyes India entry next year with own retail stores
• Insurance and reinsurance broker JLT sees boost from pound slide
• Copper recoils after big London gain as U.S. election looms
• Oil prices steady ahead of U.S. election, weak China data weighs