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

UK 100 called to open +5pts, with Asian markets weak amid on-going Eurozone concerns (Greece and Spain as usual with uncertainty about receipt of more help for the former and request for help for the latter) and US disruption (markets still closed, widespread power outages and flooding) as Hurricane Sandy makes landfall (watch the insurance sector as damage estimates begin).

The Bank of Japan (BoJ) delivered an increase to its Asset Purchase Programme significantly (second month in a row), as was expected, although possibly not enough in the eyes of some and the old adage “Buy on rumour, Sell on fact” looks valid. Interest rates were left unchanged in Japan, as was the case in India, but the RBI has given reasonable likelihood of further policy easing in Q1 2013.

While on the subject of policy easing, note the record injection by the Peoples Bank of China (PBOC) via reverse repo, to ease financing squeeze, providing a boost to Shanghai and regional equities but the size of the intervention likely removes the chance of any more RRR cuts.

In macro data overnight, Aussie New Home Sales fell again in September (three months in a row, 18-year low; need more rate cuts?), although the decline slowed from August. Japanese Vehicle Production collapsed, Industrial Production weakened more than expected, but unemployment was stable and the UBS Swiss Consumption Indicator improved.

The UK flagship index continues to hover around the 5800 level, although with an absence of participation from the US, support may be a function of caution and low volumes rather than outright bullishness. Having broken below the Sept/Oct rising lows, potential for bigger correction to 5500 still exists, although note some support at 5750 from long candle wicks.

In FX, GBP/USD has ticked up again after safe-haven seeking cooled, and after an approached of the 1.60 level, but still remains in a 1-month downtrend with falling highs. EUR/USD also still in downtrend but found support at 1.288.

In commodities, Gold still looks under pressure from trendline of resistance from 5 Oct. US Crude Oil weakened a touch, but still with support around $85 with US market closures likely limiting price movements. Brent Crude off its highs of yesterday, but remains in 1-week uptrend. US Hurricane looks to have had limited impact although this may change over the next few days as US refining capacity disruption, poor Q3 earnings season and global growth worries return as drivers.

Q3 results out this morning from Imperial Tobacco and BP show beats for both at the EPS level. In Europe results from Deutsche Bank and UBS are less inspiring in terms of EPS, but the latter look set to benefit from restructuring plans (job and spending cuts).

Today’s focus will be on Spanish Q3 GDP which if much worse than expectations could see recent re-revised deficit to GDP figures out the window again. German Unemployment will be of interest in the core nation, with consensus pencilling in a slight deterioration. Eurozone confidence figures are seen worsening a touch (weaker after lacklustre German IFO data last week), while US Housing and Consumer Confidence data is seen delivering yet more good news.

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

• Japan               BoJ Rate Decision                   Unchanged
• Aussie              New Home Sales                     Decline slowed
• Japan               Vehicle Production                  Plunged
• India                RBI Rate Decision                   Unchanged
• Switz                UBS Consumption Indicator    Improved
• See Live Macro calendar for all details

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

• Blackrock says sees pick-up in China resources demand
• BHP Billiton sees coking coal capacity up 50 pct in 2014
• Advanced Micro Devices to build server chips with ARM technology
• Standard Chartered Operating Profit Grows by Less Than 10%
• Deutsche Bank Says Profit Rose on Investment Bank Revenue
• UBS Plans 10,000 Job Cuts, Raises Profitability Goal