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

UK 100 called to open flat at 6655, with recently boosted risk appetite (US debt ceiling, likely taper delay, China rebound) little changed ahead of the delayed US employment data and in reaction to Chinese Property Prices continuing to rise (even accelerate) on the back of recent stimulus to boost growth, something which may require a policy change to rein things in before a bubble bursts and thus impact fragile global growth

Overnight, Asian markets mixed after breakeven US finish, with Japan benefiting from a weaker JPY (USD rebound) while Australia continues to benefit from China strength and a strong production update from BHP Billiton (BLT). Note however China Mobile posted its biggest decline in profits since 1999 on network build costs and third-party messaging apps.

 Note chipmaker Texas Instruments shares -4.2% after the US close due to guidance for Q4 below consensus, offsetting the Q3 beat while UK chip designer ARM Holdings (ARM) updated this morning with strong financials and an upbeat statement.

 Note comments from the Fed’s Evans that it would probably take a few months to sort out the picture for the jobs market after government shutdown and continued accommodation is likely. This side of the pond, ECB speakers warned of rate cut threatening interbank recovery and new LTRO being unnecessary. The BoE’s Taylor also said not the bank’s job to impose a cap on house price rises. Germany’s Bundesbank also warning of property bubble.

 In focus today we have UK Public Finances and the big one – how many jobs the US added (180K?) and what the unemployment rate was in September (7.3%). Nonetheless we see excitement as misplaced. September was pre-shutdown, October was an anomaly meaning November will have no comparison, so it will not be until December than normality returns

 The UK 100 maintains its rising channel from 8 October, although sideways since European close takes it close to trendline of rising lows. 6665 tested again overnight, so remains hurdle and keeps trend of falling highs since May. US jobs the driver for a break one way of the other. Or much ado about nothing?

 In FX, USD basket strengthened to 79.85 overnight but back off its best levels and failed to test prior-day’s high Uncertainty ahead of US jobs number. Support 79.7, resistance 79.88. GBP/USD dented by USD rebound from last week. Downtrend from recent spike above 1.62. EUR/USD holding its own 1.36-1.37 despite USD strength. USD/JPY rallied back to 98.3

 Gold sideways at $1315 after break above trendline of falling highs from late August. Not making much headway due to stronger USD and but still benefiting from safehaven interest in wake of US debt ceiling fiasco and in anticipation of another round in a few months. Oil remains weak on the US stockpile data yesterday as well as rebound by USD.

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