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

UK 100 called to open -10pts at 6735, after a negative session in Asia, at odds with the positive stateside finish as markets focus on a trio of trans-Atlantic events today: ECB policy update and press conference, US GDP and the Twitter IPO.

US equities closed largely positive (Nasdaq down after Tesla losses) helped by comments from Fed members that economic weakness warrants continued stimulus (this ahead of some big US data). Ratings agency DBRS said it was comfortable with upbeat assessment on Italian and Spanish debt.

Asia stocks struggling with Aussie banks going ex-div, Japan’s Nikkei dented by a negative reaction to Toyota results and China’s PBOC avoiding money market intervention. Markets continue to refrain from placing any big bets given the raft of big events this week (central bank updates, US GDP today, US employment tomorrow and China political meeting at weekend).

Overnight, data from Australia was a little mixed on the employment side (AUD slipped) while Japan showed improvements in business/economic sentiment, a continued drop in office vacancies and a surge in Toyota profits thanks to a weaker JPY – a good sign that Abenomics is working.

We have also had Twitter’s IPO price confirmed at $26/share which would value the social media company at $16bn and raise $2.1bn for the 13% stake being sold. The shares debut on the NYSE this afternoon amid much hype. And don’t forget Merlin Entertainments debuting in London next week with it also looking likely to price near the top of its range continuing the good run of UK IPOs.

In focus today we have German Industrial Production which is seen slowing in September although we did get an upside surprise from Factory Orders yesterday. The BoE is expected to sit tight on policy, with more focus on next week’s inflation report.  The ECB is also seen sitting on its hands but the press conference could provide some market volatility, but note speculation (ECB sources?) of no surprises today on rate cut or LTRO front.

US jobless claims seen relatively solid versus the prior week, while US GDP is seen slowing in Q3 which may give rise to fears of a weak Q4 and need for more stimulus well into 2014 which should supportive market bullishness.

The UK 100 remains in sideways 6715-6790 trend, potentially holding this range until tomorrow’s US jobs data should central banks fail to deliver any fireworks today. Note falling highs from 5 Nov which may hinder any advances around 6750.

In FX, USD basket continues to give up ground to trade below 80.6, slowing up following strong rise and as markets wait data updates (GDP, NFP). GBP/USD flat around 1.61. EUR/USD flat around 1.35-1.355 ahead of USD data and ECB decision.

Gold trading in a $1305-1320 range, held back by the stronger USD and falling multi-month resistance at $1350.

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