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

UK 100 Index called to open flat at 7485, in retreat from overnight highs of 7500 although still above yesterday’s 7480 breakout. Bulls hope that overnight weakness merely proves a bullish flag with the 7480 breakout level holding up and serving as a platform for a rebound towards late June highs of 7560. Bears are looking for a breach of 7480 to open the door for a 40pt retreat to 7440, if not 7400. Watch levels: Bullish 7500, Bearish 7475.

Calls for a flat open come as investors digest a mixed close on Wall St and weak session in Asia overnight. Fresh USD weakness (11-month lows; fresh Trump-Russia concerns) weighs on the UK Index and DAX by way of GBP and EUR strength (2yr high), the latter exacerbated by markets looking through ECB President Draghi’s dovish tone, still expecting a hawkish taper in Sept or Oct.

Australia’s ASX underperforms as financials give up some of their recent regulatory-inspired gains and BHP Billiton drops on concerns from activist investor Elliott Advisors about the miner’s planned foray into fertilizer. Oil is also lower, this despite USD weakness which has helped Copper spike. Japan’s Nikkei outperforms, but still in the red as financials and Yen strength weigh.

UK 100 news this morning: Vodafone tops estimates; reiterates FY outlook; good start to the year in Europe; India comp remains intense. Acacia Mining targets the lower end of production guidance due to first half Tanzanian export ban.

AO World says it is on track with its long-term strategic plan and expects full year results within consensus range. Paysafe is subject to a poss 590p cash offer (34% premium to its H1 volume weighted average first half price) from Blackstone and CVC (rejected initial approach in early May).

US companies reporting later today include Dow component General Electric, consumer staples giant Colgate-Palmolive, commercial conglomerate Honeywell and world’s largest Oil services company Schlumberger.

US equity markets finished Thursday mixed, as only the Tech-focused Nasdaq built upon Wednesday’s trifecta of record closing highs. The Nasdaq closed higher for the 10th consecutive day, its longest streak since January 2015. The S&P500, despite trading a record intraday high, closed just shy of breakeven as Materials weakness offset Telecoms strength, while the Dow Jones underperformed as Home Depot dropped 4% following Sears’ announcement of an Amazon collaboration.

Crude Oil prices have fallen back to intersecting support overnight after Brent crude briefly traded above $50 for the first time in over a month yesterday. The global benchmark rallied above the key psychological level as the US dollar traded a fresh 10-month lows, while its US equivalent also traded a 1-month high of $47.70. Both benchmarks have since fallen to intersecting support on likely profit taking, however remain underpinned by week-long rising lows support.

Gold broke out from 6-month intersecting resistance as news that special counsel and ex-FBI Director Mueller is to look at President Trump’s business transactions sent the US dollar to a fresh 10-month low. Despite retreating from yesterday afternoon’s highs off $1248, the precious metal has rallied from overnight lows of $1243 as the greenback extends its sell-off.

Today’s macro calendar is void of top-tier data, with only UK June Public Sector Borrowing on offer at home (9.30am, forecast lower), which could move GBP and have a knock-on for the UK Index .

The afternoon is limited to Canadian Inflation and Retail Sales. Headline inflation is expected slower in June, at odds with the recent BoC rate hike. However, Core may be of more interest, having matched 6yr lows in May. Retail Sales may have pulled back again in May, with the ex-fuel measure displaying 2017 seasonality by dropping back after another 3-month spike.

To close the week, the now traditional US Baker Hughes Rig Count could spice up oil markets between the European and US market close. Will the update (more or less rigs in operation?) suggest US drilling activity adding to or easing the global supply glut?

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

• Blackstone, CVC make $3.7bn bid for payments firm Paysafe
• Paysafe to buy Merchants’ Choice Payment Solutions for $470m
• Beazley’s H1 profit buoyed by speciality lines, investment gains
• Beazley posts H1 pretax profit of $158.7m
• Vodafone reports better – than – expected 2.2% growth in Q1
• Acacia Mining says H1 gold production 4% higher last year
• Acacia Mining aims for lower end of FY guidance after tough H1
• UK Lender Close Brothers year – to – date loan book rises 6.4%, sees good result for current financial year
• BATS to add three non – exec directors to board after Reynolds deal closure
• Homeserve says trading for April 1 to July 20 in line with expectation
• AO World Q1 UK revenue growth 2.5%
• Gold steady, on track for second weekly gain
• Oil nudges up, hovers below $50 level ahead of OPEC meeting