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

UK 100 called to open +62 at 6770, as developments overnight in Russia seem to have eased concerns somewhat. Russian President Vladimir Putin ordered troops that took part in military exercises this week to return to base, Russian news agencies quoted the Kremlin spokesman as saying, according to Reuters news agency. It has since emerged that ousted Ukraine President Yanukovych asked Russia to send troops over the border to protect civilians, according to Moscow’s UN envoy.

In Asia, markets seem to have settled and have reversed losses since developments in Russia. The Nikkei was recently up 69 points at 14,721 whilst the Hang Seng was up 146 points at 22,647.

In the US last night, the concerns of military action caused a drop in equity markets with the Dow Jones down 153 points at 16,168 whilst the S&P was down 13 points at 1845. With the positive news only coming in a few hours ago, US indices didn’t have a chance to recover any of its losses. US futures are however pointing to positive starts for later on this afternoon.

Results today: Glencore Xstrata (GLEN.L) FY Adjusted income $3.67bn vs. $3.81bn expected, industrial adjusted EBITDA down 4% to $10.5bn, net debt up to $35.8bn. Fresnillo (FRES.L) Silver production up 4.3%, FY rev EBITDA Net profits lower than in 2012. Rev $1.615bn vs. $2,157bn, FY gross profit $767.4m vs. $1.364bn, FY pretax $418.7m vs. $1.177bn, sees 2014 silver production at 43m oz, fold production at 450,000 oz. Serco (SRP.L) FY revenue up 5.6% £4.288bn vs. £5.08bn, adjusted pretax profit £254.4m vs. £271.6m, FY basic EPS 19.51p vs. 48.94p. Meggit (MGGT.L) Adjusted operating profit £397.2m, revenue up by 2%, FY sales £1.64bn vs. £1.65bn, FY adjusted EBITDA £479.3m, sees 6-7% average organic revenue growth in medium term, planned dividend to tal 12.75p. 

The UK 100 has bounced off the key 6700 level as tensions ease. One-week highs of around 6880 remain resistance to the upside whilst 6700 and 6666 become support on the downside. Looking at the one-year chart on the UK Index , we remain in this upward channel although recent highs have created a technical stumbling block to further fresh records.

In commodities, we saw gains across the board from gold to oil as the tensions escalated with a so-called 3am deadline that came and passed without conflict. Gold reached $1355, to trade fresh 6 month highs as demand for the safe haven metal surged. With $1350 having been breached albeit briefly another continued surged could push gold towards August highs. WTI also climbed over 2% to trade over $105 on concerns that energy supplies will be disrupted. This morning though paints a slightly different picture. As the deadline passed and talks of this being a training exercise the commodity prices have all retreated with both gold and WTI down by almost 1% from highs highlighting the volatile conditions and the caution that needs to be applied when trading.

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

• NZ                    Commodity Price                    IN-LINE
• AUSSIE             Current Account                      WORSE
• AUSSIE             Net Exports                             WORSE
• AUSSIE             Building Approvals                  BETTER
• JAPAN              Labor Cash Earnings               WORSE

See Live Macro calendar for all details

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

• Rotork full-year adjusted pretax profit rises 8.5 pct
• Fitch Affirms Vodafone at ‘A-‘; Outlook Negative
• Moneysupermarket.Com full-year earnings rise 26 percent
• CLS Holdings full-year net assets per share rises 9.9 percent
• Devro says full-year pretax profit 37.5 mln stg
• Pace full-year adj. EBITA rises 22.5 pct
• Ashtead raises full year profit target on US, UK demand
• Alent statutory profit before tax rises 6 percent
• Abcam first-half revenue rises 8 percent
• Virgin Money makes 2013 profit of 53.4 mln stg
• Perform says on track to meet revised forecasts
• Brit Group to list shares on London Stock Exchange
• Tullet Prebon says FY revenue falls 6 percent
• Ophir Energy in deal to look for oil in Seychelles
• John Menzies posts FY pretax profit 42.1 mln STG
• Jardine Lloyd Thompson posts rise in underlying profit
• Regus FY revenue rose 23.3 pct to 1.53 bln STG
• Hansteen refinances German portfolio with new 343 mln euro facilities
• Rotork acquires South Korea’s YTC for 64 mln stg
• Glencore beats earnings forecast on strong trading performance
• Fresnillo profit down on lower precious metal prices
• Meggitt ups dividend as year profit rises 3 pct
• UK outsourcer Serco says braced for tough 2014 as profits fall