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

The UK 100 set to open flat at 6555pts as global markets attempt to come to terms with a rollercoaster week. Two days of gains followed by two days of losses brings us right back to where we started the week.

The UK Index closed lower by 30pts yesterday as traders took risk off the table while they digest the news the US economy will be without stimulus in as little as six months’ time. There is a positive here, the economy is deemed healthy enough to stand unassisted. Normal market conditions (a thriving economy, without stimulus and higher interest rates) had to be restored at some point, perhaps we had forgotten what they are – it’s been a while!

Traders of US markets chose a ‘glass half full’ mentality. The Dow Jones advanced 109pts, erasing the previous day’s Yellen-induced decline. S&P500 up 0.6% and NASDAQ up 0.27%.

Asian markets rebounded from the biggest decline in seven months after a successful baton change from the US. China, Australia and India all witnessed stock market advances with only Japan not joining the party.

Hong Kong’s Hang Seng China Enterprise Index (HSCEI) is kicking hard in attempt to keep its head above bear market waters. The index gained 2%, erasing yesterday’s 1.7% drop which brought losses from its December 2nd high past the 20% threshold that some investors consider a bear market. This leaves the index on a knife edge going into the weekend with HSBC’s Chinese Manufacturing PMI report scheduled for release at 01:45 on Monday.

In focus today: European Council Meeting (all day), EU Current account at 9:00am, UK Public Sector Net Borrowing at 9:30, CAD Bank of Canada CPI and Retail sales at 12:30, EU Consumer confidence at 15:00, US FED Minneapolis’s governor speaking at 20:30, US FOMC Stein speaking at 22:30.

Commodities:  Gold reached $1,335.63 oz up 0.6% on speculation that the largest weekly loss since November would spur demand even after the Federal Reserve said interest rates may increase and as Goldman Sachs predicts declines. Copper slipped 1.9% to $6,430 and is poised for its fourth week of declines as demand has been dampened after the FED signalled it would raise interest rates. WTI Crude fell 65 cents to $98.25 while Brent Crude fell 44 cents to $106.01 both falling amid supply rising to the highest level since November.

FX: Dollar is set for its biggest weekly advance in two months versus its peers after FED Chair Janet Yellen said borrowing costs could start rising “around six months” following an end to their bond buying program. Dollar reached $1.3788 against the Euro the strongest level since March 6^th. 102.38 against the Yen. Euro reached 141.15 against the Yen. Euro rose as high as 82.68p against the Sterling as EU  inflation beat forecasts.

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

• NZ                    Consumer Confidence Index (March)                        WORSE
• NZ                    Consumer Confidence Index (Yr on Yr)          BETTER
• NZ                    Credit Card Spending                                      WORSE

See Live Macro calendar for all details

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

• BG Group to slash jobs in Britain and Australia –paper
• Schroder Real estate to raise 40.2 mln stg by initial placing
• OFT closes investigation into retailers after price promise
• Balfour Beatty awarded 214 mln pound contract for Dubai mall