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

UK 100 called to open +20 points at 6750 following a strong performance seen in the UK markets yesterday. Remember that US markets were closed for President’s Day so volumes were lower than normal. Despite the markets being closed, notorious billionaire investor George Soros has doubled his bet that the S&P is headed for a fall (MarketWatch). Positive momentum today is also seen thanks to another big gain seen in Japanese markets overnight.

Overnight in Asia, the Nikkei advanced over 3% (450 points) to 14,843 after the BoJ’s monetary policy statement (maintained unprecedented asset purchases and boosted lending programs) and the Yen weakened. China’s Hang Seng was flat at 22,535.

In focus today macro data wise, we have German ZEW (survey of economic sentiment) at 10am and current account data from the Eurozone. Keep eyes on a raft of data from the UK at 9:30am including house price data, producer price index & retail price index data. Later today, Empire Manufacturing numbers from the US will be one to keep an eye on at 13:30, Speak to your trader about expectations and live figures.

Results today: BHP Billiton (BLT.L) Posts an 83% rise in half-year profits at £4.8bn ($8.1bn) Revenues increased 5.7% while expenses excl finance costs were cut 15%. Iron ore production hit a record of 108m tns while coal output also hit a new high of 68m tns both in Australia. InterContinenal Hotels (IHG.L) FY underlying profit rose 10.4% to $668m. Profit increased $53m to $600m, adjusted EPS up by 13.9%. John Wood Group (WG..L) FY Revenue $7.1bn vs. expectations of $7.2bn, profit before tax $412.8m up 14% and proposes 22cents p/sh for its dividend. Drax Group (DRX.L) FY EBITA fell 23% to £230m, final dividend at 8.9p p/sh, underlying earnings ahead of expectations at £142m.

The UK Index managed to break out of yesterday’s downward channel, setting new one-week highs. We now look at three-month highs for our first real level of resistance (6780 and then 6850). On the downside, support is now formed at 6700 and at around 6650. Looking at the one-year chart, the UK Index is still in this upward channel, but heading towards the top of it. It does still have around 100-200 points until it hits the top of this channel however.

In commodities, Gold retreated back almost 1% to $1317 from highest levels in three months on the back of profit taking as the precious metal has already rallied over 10% this year alone. Despite recent strength analyst remain unconvinced with UBS joining Goldman and Citi with a bearish note citing a fourth quarter average of $1050 some 20% lower. Keep an eye out for US macro data in the afternoon as this could cause some movements in gold. For WTI it continues to trade around the $100 handle as the cold weather spell in the US increases demand.

In FX the Yen fell after the BoJ boosted lending programs and said it would continue monetary easing to meet inflation goals, with the USD/Yen hitting $102.6 weakest levels this month.  Elsewhere following minutes from the Australian Reserve Bank the AUD touched one month highs versus the USD at 90.43 cents.

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

• Japan       Machine Tool Orders         IN-LINE

See Live Macro calendar for all details

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

• AZ Electronic Materials adj pretax profit falls 19 pct
• Essar Energy Q3 gross refining margins at Vadinar, Stanlow fall
• InterContinental Hotels posts rise in FY profit
• Intercontinental sells Mark Hopkins for $120 million
• Drax FY EBITDA fell 23 percent to 230 mln stg
• Wood Group reports 2013 profit up 14 percent
• Morgan Sindall full-year adj. pretax profit falls 34 pct
• UK car dealer Pendragon posts 14 pct rise in full-year profit
• Spirent says to acquire Dax Technologies for 37 mln stg
• UK’s Poundland plans March listing on London Stock Exchange
• First Group to run British rail link for 6 more months
• Dragon Oil lifts well drilling in 2014 to meet production target
• Kier says FD Haydn Mursell to take over as CEO
• Ophir Energy says starts drilling well in Gabon