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

UK 100 called to open up flat to slightly higher this morning, as markets take a breather after the near 100 point rally we saw yesterday. UK Index futures were indicating a lower start this morning however the markets’ recent resilient trend seems set to continue.

Overnight Asian markets were mixed with the Nikkei recently up 125 points at 13,977 helped by good news from the quarterly Tankan survey, which showed a rebound in business confidence. The Hang Seng was down 82 points at 20,721 re-opening after its national holiday. Other data included Australian Rate Decision which came in at 2.75%, unchanged.

In the US, good manufacturing data (50.9 vs 49 previously. A figure above 50 shows an expansion.) helped the Dow Jones close 65 points higher, just below the 15,000 level at 14,975 whilst the S&P closed up 9 points at 1,615.

In focus today macro-data wise will be PMI Construction figures from the UK at 8:30am as well as US Factory Orders at 2pm. Corporate Earning’s wise, we have interim results from Ocado Group, what will they deliver? (sorry) and St Modwen Properties. Keep an eye on trading statements from Persimmon and Topps Tiles.

UK 100 smashing through yesterday’s 6,200/6,250 resistance levels, now hovering around another psychological level of 6,300. Yesterday’s intraday high of 6,320 remains the first resistance level, whilst we’re now finding some support at 6,270/80.

In FX, the USD continued to rise after upbeat manufacturing data and a continued view that the US Fed Reserve will start to exit its monetary policy later this year.  The $ vs € rose to 1.301 ahead of the ECB meeting on Thursday. Ahead of the Bank of England policy meeting, the £ vs $ was little changed, currently trading at 1.52

Gold slowly starting to creep higher despite the strength in the US dollar, currently trading at $1,258. $1,275 remains the next key resistance level.

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

• Japan       Labor Cash Earnings           IN-LINE
• Aussie      Rate Decision                      IN-LINE
• NZ            Commodity Prices              WORSE

See Live Macro calendar for all details

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

• St. Modwen Properties first-half net asset value rises 4 percent
• PZ Cussons to buy Rafferty’s Garden for 42 mln stg
• Topps Tiles Q3 underlying sales down 1.5 pct
• CRH spends 470 mln euros on development in H1
• Whitbread launches new compact city hotel concept
• Fastjet says Tanzania sales up 22 pct in June vs May
• Antofagasta acquires 40 pct of hydroelectric project
• Heritage Oil refinances debt with long term facility
• Aggreko commissions two gas power plants in Africa
• Anite full-year pretax profit rises
• Anite buys distributor of network testing products Genetel SAS
• Persimmon to hit 15 pct operating margin target by first-half
• N Brown posts 8 pct revenue rise, upbeat on FY
• JKX starts process to try to unlock Rudenkovskoye gas
• Thorntons sees annual profits ahead of forecasts
• John Menzies says full-year outlook in line