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

UK 100 called to open +30pts at 6751, buoyed this morning by predictions over the weekend of strong growth in the UK economy. Yesterday, the CBI (Britain’s business association) revised up its forecast for the country’s economic growth next year to 2.4%, predicting a rebound in business and housing investment.

On Friday, the Dow Jones rose 70 points to 15,616 whilst the S&P added 5 points at 1,762. Overnight, Asian stocks (Chinese) eased in a sluggish session as traders chose discretion over valour ahead of central bank meetings in the EU  as well as the critical U.S. payrolls report due out. The Nikkei was closed thanks to a Japanese public holiday whilst upbeat services data from China gave the markets an early lead although the Hang Seng was recently down 40 points at 23,208.

Overnight data includes Fitch raising their outlook on Spain to stable from negative the nations bank overhaul has advanced well keeping their BBB rating. Also Chinese non-manufacturing PMI data came in better than expected at 56.3 vs. 55.4 last month showing continued signs of economic expansion.

In focus today, there’s not much by the way of data this morning with the highlight to be October manufacturing PMI’s from Spain, Italy, France, Germany and the Eurozone. We also get the November results for Eurozone Sentix investor confidence along with October numbers for UK construction PMI. Interim results from HSBC today (08:15am) will surely be one to keep an eye out for too.

The UK 100 is still wrestling with its one-week sideways trend, currently sitting in the middle of a channel between 6,700-6,800. A significant break above recent spikes of 6,763 could see us head back towards the 6,800 level to the upside. A break to the downside and through its pivot level of 6,741 could see a return to one-week lows around 6,700.

In FX, the euro fell sharply against the dollar on Friday on growing concerns that the European Central Bank will further ease monetary policy further to bolster economic growth, € vs $ is currently trading at 1.3488.

Gold weaker again, falling to $1313, back around one-week lows. In Oils, Crude oil futures settled around 95 dollars a barrel, the lowest level since mid-June, amid fears about the glut in US supplies and sluggish demand. Meanwhile Brent crude fell to $106 a barrel for the first time in three months following reports of increasing oil production in Libya

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Overnight Macro Data: (Source: Reuters/DJ Newswires)

• NZ            Commodity Price                In-line
• AUSSIE     Retail Sales                         Better
• AUSSIE     House Price Index   (QoQ)  Worse
• AUSSIE     House Price Index   (YoY)    In-line

See Live Macro calendar for all details

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

• Amec acquires U.S.-based nuclear services firm for $29 mln
• Bumi on track to hit 2013 output target, says outlook challenging
• Merlin says to close London float order books early
• Conviviality Retail H1 underlying sales up 0.6 pct
• Ryanair cuts profit forecast again as fares fall in Europe
• Weir says third-quarter profit lower than expected
• HSBC profits seen up 10 pct as cost cuts pay off
• E2V Technologies H1 pretax profit falls 25 pct