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

UK 100 set to open higher by 7pts at 6608 setting up what could be a third straight day of gains. The UK Index closed higher by 40pts yesterday as global markets welcomed Putin’s statement Russia would not look to take control of more of Ukraine after approving a plan to make Crimea part of Russia. The 40pt advance resulted in a close above 6600 for the first time in a week, preserving an 18-month upward trend line.

The US markets embraced the news from Russia. The Dow Jones racked up 89pts or 0.55%, S&P500 up 0.72% and most impressively the NASDAQ scored over 53pts to finish up 1.25%

Trading in Asian markets was broadly uneventful, shallow losses or gains were registered as the Federal Reserve two-day policy meeting draws to a conclusion. Stimulus tapering is likely to continue, threatening to strengthen the dollar, resulting in dearer USD denominated commodities for those purchasing with alternative currencies.

The FOMC could detail the criteria for future interest rate hikes having seen the jobless rate fall to 6.5%, previously considered the trigger for raising the base rate.

European trading should be steady this morning with conservative traders choosing to await details of Mr Osborne’s budget and commentary from the Fed this afternoon. The chancellor’s speech commences at 12:30 GMT.

Results today: Smiths Group (SMIN.L) H1 headline pretax profit £215m, interim dividend 12.75p, operating margin 17%, basic EPS 23.7p, H1 revenue £1.44bn (£1.48bn expected) sees 4-5% impact on FY earnings from “FX Headwinds”.

In focus today: BoE meeting minutes, MPC Vote, Claimant Count rate/charge, unemployment rate from the UK all due at 9:30am. EU Construction output at 10:00, UK Budget report at 12:30, US Fed interest rate decision, FOMC economic projections, MBS and Treasury purchase program (QE) due at 18:00 & Monetary Policy statement press conference at 18:30

Commodities: Gold trades near one week low of $1,350.88 the lowest since March 12^th which has fallen 2% in the past two days as signs of easing tension in Ukraine has reduced the safe haven appeal. Nickel rises to $16,310 a metric ton which is an 11 month high as raw stockpiles in China are falling amid Indonesian export ban and speculation that the Russian supply will be disrupted. The metal is up 17% this year. WTI Crude climbed $1.62 to $99.70 a barrel and Brent Crude rose 55cents to $106.79 a barrel as Enterprise Products Partners said it would “more than double the capacity of its Seaway pipeline as early as May”

In FX: the Dollar was near a four month low against its peers on speculation the FED will drop its jobless rate threshold and adopt qualitative guidance for signalling when it will raise interest rates. Against the Yen it traded at $101.54, $1.3926 against the Euro. The Euro was little changed against the Yen at 141.40.

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

• AUSSIE             Skilled Vacancies                    IN-LINE
• JAPAN              Tokyo Condominium Sales      IN-LINE
• JAPAN              Industry Activity Index            IN-LINE
• JAPAN              Department Store Sales          IN-LINE

See Live Macro calendar for all details

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

• Silence Therapeutics looking at balance sheet options
• Domino Printing Sciences makes solid start to 2014
• Kentz wins $38m contract from Cardón IV
• PureCircle seeing improved profitability
• Unite wins approval for London student accomodation development
• UK engineer Smiths Group H1 profit hit by stronger pound
• Cape confident on improvement after 2013 profit jumps
• Ophir says offshore Gabon well is dry hole
• Chariot oil and gas says fully funded for all current commitments through to end of 2015