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

UK 100 Index called to open -10pts at 7285, back below 7300 to extend yesterday’s sell-off and a 24-hour falling channel. Bulls need a break above 7300 to inspire hope of a rally back towards 7400. Bears want another test of 7275 overnight lows to extend the channel and threaten a breach of 4.5-month intersecting support which could kick off a drop towards April lows of 7085. Watch levels: Bullish 7300, Bearish 7275.

Calls for another negative open come as Asian bourses mimic a mixed to weak Wall St finish following yet another North Korean missile test, although the market response has been thus far rather muted. Either because we’ve got used to the threats, expected it after recent sanctions led to more aggressive rhetoric, or because Pyongyang kept it local (another intermediate range rather than intercontinental), annoying Japan but not quite goading the West.

Japan’s Nikkei outperforms, recovering from an understandable dip thanks to an unwinding of Yen strength. Australia’s ASX, however, nurses losses after miner Fortesque announced a change at the helm, and peers (BHP, RIO -2%) suffered from the continued retreat for metals like copper, iron ore, nickel, zinc. Oil prices off their highs is also weighing.

In UK Index news: Coca-Cola HBC CEO Dimitris Lois is taking a 4-month medical leave of absence. He will remain involved, but with the CFO taking over daily duties. Credit Suisse has trimmed its long bets on Aussie Miners, including BHP Billton and Rio Tinto.

Aviva has completed the sale of its 50% holding in Spanish life insurance and pension joint ventures. JD Wetherspoon posts FY17 earnings growth; expects to achieve current expectations.

JD Sports enters South Korea with Hot-T stake purchase. GlaxoSmithKline says Trelegy Ellipta once-daily single inhaler triple therapy receives positive opinion from CHMP in Europe for COPD.

US equity markets finished mixed at the closing bell, as the Dow Jones extended its run of record closing highs to three days, while the S&P 500 and Nasdaq both saw their streak of closing highs end. Boeing contributed the most gains to the Dow, closing at a record high after announcing increased 787 output, while fears that rising inflation will coerce the Fed into raising interest rates in December hurt the Dow’s peers, with Retail stocks bearing the brunt of losses.

Crude Oil benchmarks have retreated from yesterday’s fresh multi-month highs on perceived profit taking. Having traded a fresh 5-month high of $56 yesterday, Brent crude has retreated towards the $55 mark, however intersecting support has kept the benchmark in a tight range, while US crude has fallen from yesterday’s $50.5 1-month high, dipping below $50 but remaining above $49.5.

Gold has once again climbed on the news of North Korea antagonising its neighbours across the peninsula, with the safe-haven asset rallying from 2-week lows overnight. While the precious metal remains a distance from last week’s 13-month highs and retreated from overnight highs of $1334, this could provide a springboard to above $1345 by way of a bullish flag pattern.

In focus today will be North Korea’s overnight missile launch, which keeps in the play the geopolitical threat of late in Asia, and the rather muted market response.

Expect continued debate about yesterday’s Bank of England statement and whether it was another round of the “BoE who cried wolf”. Was it aiming to strengthen GBP via the threat of an imminent rate hike, to tame above-target inflation, but unlikely to actually follow through (again) while the quandary of high inflation/low unemployment/low wage growth persists? Especially with the continued headwind of Brexit uncertainty.

Comments from BoE speakers (including the dovish Vlieghe at 9.50am this morning) are sure to attract even more attention in the weeks to come, as will the the publication of the Bank’s Quarterly Bulletin at midday today.

Data today is limited to US Aug Retail Sales (1:30pm), forecast slower for both the headline (0.1% vs 0.6% prev) and excluding Autos & Gas (0.3% vs 0.5% prev). Industrial Production (2:15pm) is seen pulling back for a second straight month (0.1% vs 0.2% prev) while Manufacturing rebounds (0.4% vs -0.1%) and UoM Consumer Confidence (3pm) normalises after after last month’s pop.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.

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

• GSK’s three-in-one inhaler gets positive opinion from EU agency
• Pubs group JD Wetherspoon reports 28% jump in profit, anticipates trading outcome for current FY in line with expectations
• Wellesley Petroleum and Faroe Petroleum drill dry well in the North Sea
• JD Sports enters South Korean market with Hot – T investment
• Recruiter SThree sees higher profit as Europe and U.S. shine
• UK’s Ofgem cuts £200m from electricity distribution network company allowances
• Indivior asserts new patent against Anda – filers
• Aviva completes sale of stake in Unicorp Vida
• Coca – Cola HBC CEO to take temporary leave of absence for medical treatment
• Purplebricks Enters the U.S. Residential Real Estate Market with a Unique Recipe for Success
• Australia’s BHP Billiton falls to its lowest in 3 weeks
• Gold up after North Korea fires another missile over Japan
• Oil prices set for weekly gains as demand outlook brightens