Markets Overview:

UK 100 called to open -5pts at 7465, held back by resistance at 7477, but still benefiting from short-term rising support from mid-last week. Bulls need a break above yesterday’s 7485 highs to extend the 4-month up-channel towards 7650. Bears require a breach rising support at 7450 to put the short term uptrend in jeopardy. Watch levels: Bullish 7485, Bearish 7450

Calls for a slightly negative open are in spite of a positive Asian session, helped by better than expected China data (GDP, Ind. Prod, Retail Sales), which buoyed investor sentiment overnight via hopes of an easing in the growth slowdown helped by Beijing stimulus and a trade war calming.

This, however, follows some mixed US corporate earnings (IBM, Netflix) which dampened an enthusiastic Wall St close which had been driven by well-received results from consumer and healthcare names; less so from banks (read Bank of America) before European peers update.

Note Gold weak as equities push north, despite USD off its highs. Brent Crude Oil at $72 is making fresh multi-month highs, helped by USD off its highs and amid supply concerns. The UK Index is helped by GBP/USD holding closer to March lows than April highs.

In corporate news this morning:

BHP cuts full year iron ore production guidance (265-270m from 273-283m) to reflect Australian cyclone impact. It had flagged a 6-8m cut on 1 April; echoes peer Rio Tinto’s cut yesterday. Other commodity guidance unchanged.

Bunzl Q1 revenues +4% (+2.5% at constant FX, +1.5% underlying). Overall positive performance for distribution and services but lack of volume and price inflation slowed N America growth to ~1%.

Segro says continued to perform well in Q1; vacancy rate -80bp to 4.4%; secured £21m new headline rent; net investments £40m, sold £70m of land.

Mediclinic says 2019 results in line with market expectations in challenging healthcare environment. Group revenues +2%, EBITDA -3.5%. EPS expected -10%.

DS Smith sells two businesses for £54m to satisfy EU demands related to acquisition of Europac.

Hunting Q1 underlying EBITDA in-line with targets; outlook for rest of year positive. US onshore remains busy (results ahead of expectations) but offshore (Gulf of Mexico, North Sea) continues to face slow, challenging markets. Titan revenues rose, but margins fell due to competition.

Telecom Plus FY adjusted pre-tax profits expected to be towards lower end of previous guidance due to impact of a warm winter and Ofgem price cap and expansion investment. Debt rose.

Countryside Properties expects FY results in line with consensus. COO Rebecca Worthington leaving group. Excluding acquisitions, completions +43% YoY.

Quilter assets under management +5.1% since 31 Dec. Net inflows +£0.5bn.

Polymetal adds additional listing on Kazakhstan’s Astana International exchange.

In focus today:

UK Inflation Rate (9.30am) may show the headline rate extending its 2019 rebound to 2% YoY, while Core firms to 1.9%. Watch for any benefit to GBP hampering the UK Index .

On the continent, however, Eurozone Inflation (10am) is expected to confirm downward pressure on prices, keeping things difficult for outgoing ECB president Mario Draghi.

Speakers today include the Fed’s Harker and Bullard late this afternoon/early evening, along with the ECB’s Lautenschlaeger, before the Fed’s Beige Book (7pm) economic assessment tonight.

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