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

UK Index called up 27 points this morning following a muted trading session yesterday in Europe. The US however, extended its recording and closed higher. This was despite a round of mediocre earnings, MacDonald’s being a big disappointment. However financials and health care stocks led the way. The Dow Jones, S&P 500 and Nasdaq all bounced back – The S&P 500 registering yet another all-time high at 1669.4pts. Miners gained on gold prices surging which helped the indices. After the bell Netflix shares fell 6.1% in after-hours trading after it reported a profit for the second quarter but added fewer subscribers to its video streaming service than analysts expected.

Over in Asia the Nikkei gained for a second straight day, led particularly by large cap stocks as well as the steel sector. There was a media report suggesting that a price hike in steel products would occur. Hong Kong and China shares led gains in Asia on Tuesday, lifted by local media reports seen as clarifying official tolerance for slowing growth, with mainland markets further buoyed by a reported delay in resuming new A-share listings.

In focus today we have US Price Index at 14:00 closely followed by EZ Consumer Confidence and US Richmond Fed Manf at 15:00. Positive US data could see the US Indices push to new highs once more. Be aware we do have tech heavyweight Apple reporting after hours today – will they struggle like other tech giants so far?

The UK 100 continues to find resistance at the 6600 level once more. Overnight like yesterday we failed to break this level once more. Despite sideways movements any good push could see a test of 6700 and beyond.

In FX, GBP/USD still continuing to test the 1.53 handle. Like yesterday a significant break above 1.53 could open up 1.55 or even 3 month highs of 1.57. EUR/USD remains unchanged at 1.32 handle.

In Commodities we have seen Gold surge to overnight highs of $1338 level last seen a month ago. With $1340 still unbroken will this prove to be significant resistance? US light crude has slowed and failed to break the $109 level now back at  $106.5. Brent Crude continues to trade sideways at $108.5 handle. Prices have slipped back from 16-month highs as US home sales fell raising concerns that growth will stall in the world’s biggest consumer of oil.

Supporting the argument for retention of QE, the unexpected falling home sales data in the US caused the USD to fall against JPY.

GBP gained against USD for a fifth day, the longest winning streak for 3 months, as PM David Cameron said an improving economy may allow the government to cut taxes.

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

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

·         UK Spread-better IG Group says FY revenues fall 1.4 pct
·         Insurer Beazley’s profit falls on low investment returns
·         Carpetright’s UK sales dented by July heat wave
·         PZ Cussons full – year profit rises
·         Diageo buys remainder of Chinese distiller
·         Avation Plc sees FY revenues up 22 pct
·         Anglo says Kumba reports headline earnings of R7.7 billion
·         IG full year revenue down 1.4% at £361.9 million
·         Croda first – half profit up 6 pct, expects progress in remainder of the year
·         PZ Cussons FY profit before tax 107.5 million stg
·         Wood Group says awarded Papua New Guinea contract
·         Tullow Oil says French Guiana well is dry hole
·         Premier Foods H1 profit up 50 pct, sees FY at top of range
·         Sage says expects to meet targets after trading in line