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

UK 100 called to open +30pts, regaining the 5,800 handle, after the US Federal Reserve (Fed)’s Open Market Committee (FOMC) minutes contained dovish commentary signalling the US central bank moving ever closer to taking additional policy measures to boost the economy.

Several committee members judge further monetary easing necessary fairly soon if there is not a significant upturn in economic activity. Many also in favour of leaving interest rates low for even longer than the existing end-2014 timeframe and of the opinion that large scale asset purchases (QE3, quantitative easing) would help boost the US recovery.

This sets things up nicely for Fed Chairman Bernanke to make an announcement at next month’s FOMC meeting (13 Sept), however, some even hope that he uses the Jackson Hole Economic Symposium  (31 Aug) as he has done in the past (2010, for QE2).

Weak macro data from China in the form of HSBC Flash China PMI Manufacturing has added to the stimulus focus, with the data printing a 9-month low and expectations rising that the Chinese Central Bank (PBOC) will also soon be announcing new/more stimulus measures. Note however that the Conference Board Leading Index for China rose last month, providing a conflicting data-point.

These market positives overrode the negatives from Europe that no decisions on an extension of payback timeline for Greece would be made before the Troika’s September report (IMF, EC & ECB) on the state of the troubled nation’s finances.

Note that Hewlett Packard, often used as a macro-economic growth indicator reported quarterly results which went against peer Dell who showed declining growth the prior day.

In the Commodities space most are benefiting from the FOMC minutes, Gold up near May highs on inflation expectations and Oil on hopes for increased global economic activity and thus demand. Mining unrest in South Africa also proving support to metals prices. In FX, USD weaker versus majors (GBP, EUR, CHF, JPY) on expectations of upcoming quantitative easing from the US central bank.

A busy macro day ahead, for a change.  PMI Manufacturing & Services data for France, Germany and the Eurozone is seen remaining depressed, below the 50 growth/contraction hinge point. UK BBA housing loans should have grown by more than last month. US weekly jobless is seen flat, while US New Home Sales should have shown a rebound in growth for July.

Results out from Kazakhmys (KAZ) and Diageo (DGE) this morning.  IT would appear that the miner has missed expectations while the drinks manufacturer has beaten. However, as always, the devil is more often than not in the detail so speak to your trader for more details or just a chat about the markets and what you like to trade.

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

• China               Conf Board Leading Econ Index          Improved
• China               HSBC lash Manuf PMI                         Deteriorated
• Germany         GDP                                                     In-line
• Switz                Trade Balance                                     Surplus widened
• See Live Macro calendar for all details

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

• Kazakhmys Cuts Interim Dividend as Revenue Falls, FY Output on Track
• Exillon Energy – Drilling Update and Notice of Results
• Genel Energy maintains 2012 sales guidance, to farm in to offshore Morocco
• Sportech says trading in line
• Greencore makes ready-meal bolt-on deal
• Diageo profit rises, says on track to meet targets
• Premier Foods sells spreads and jellies unit for £200m
• IMI profit +4%, sees slower growth in H2
• New World Resources 1H Net Profit EUR35 Million, -60%YY
• SIG PLC first-half pretax profit up 1.4 pct, sales flat
• Costain 1H Pretax Profit Rises, Raises Dividend by 8%
• Gold Fields 2Q Profit Up, Sees FY Attributable Gold Production Down
• Petropavlovsk 1H Depreciation Charge Drags on Profit
• Skyepharma Swings to First-Half Loss, Sees Future Growth
• Skyepharma Receives UK Regulatory Approval for Asthma Treatment
• Premier Oil Posts Record 1H Pretax Profit on Soaring Production
• Gulf Keystone Petroleum. Notice of Half Year Results on 12 Sept
• Faroe Petroleum Acquires 12.5% interest in Barents Sea Licence
• Salamander Energy PLC Operational Update
• WH Smith Pre Close Trading Update