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

UK 100 called to open flat at 6816, as markets wait for a raft of macro data due out today before making its mind up on a direction.

In the US, markets edged higher thanks to comments from the Fed’s Janet Yellen, reaffirming the Central Bank’s key tapering stance, comforting markets. The Dow Jones closed up 74 points at 16,272 whilst the S&P edged 9 points higher to 1854.

Overnight in Asia, markets were mixed ahead of Chinese data (February’s official manufacturing data which is scheduled for Saturday). The Hang Seng was up 73 points at 22,901 whilst the Nikkei was down 82 points at 14,841. Chinese markets have however bounced back in February following a bad start to 2014, currently up 3.6% month-to-date. The Nikkei however is currently down 0.4% for the month, with one more trading day in Feb to go.

In focus today macro data-wise we have a busy day ahead with the key ones to look out for being Eurozone consumer price index & unemployment rate (10am), Canadian & US GDP (13:30) as well as US personal consumption, Chicago PMI, University of Michigan confidence and pending home sales (13:30, 14:45 & 14:55 respectively).

Results today: Pearson (PSON.L) FY Sales £5.2bn vs. £5.8bn, FY div 48p vs. 47p expected, but expects 2014 earnings to fall due to a deteriorating US education market. William Hill (WMH.L) Final div 7.9p, total div 11.6p up 12%, pre-tax profit £277.7m, EPS 25pgroup rev up 5% in first seven weeks of 2014. International Consolidated Airlines (IAG.L) Operating profit €770m, Rev 18.7bn vs. 18.9bn expected, states “relatively flat unit revenue growth in 2014”. Rightmove (RMV.L) FY underlying operating profit up 19% to £104m, final dividend 17p p/sh, total dividend 28p p/sh, rev up 17% to £139.9m. Old Mutual (OML.L) Funds under management £294bn, final di 6p vs. 5.9p expected, plans IPO of US Asset management business subject to market conditions. Mondi (MNDI.L) Operating profit ex-items €699m up 22% Total div up 29% 0.36, pricing outlook depends on European recovery.

The UK 100 found some resistance at the top of its upward channel (one-year chart), hitting 6880 and then rebounding. We seem to be finding some resistance at these levels and would need a significant break of 6850-6880 for any meaningful upside. Support remains at 6750 and then 6700, with resistance clearly being formed at 6850-6880. It will be interesting to see the macro data today for a direction on the indices.   

In commodities we’ve seen gold head for a second monthly advance. Concerns regarding a slowdown in China, unrest in Ukraine and the consequences of Fed stimulus tapering, has increased the demand for havens. Gold currently trading at $1330. Slowing growth in China impacting the price of copper, trading near two month lows at $6,998 a metric ton. US light crude fell for a second day, trimming a monthly advance amid speculation demand may slow in the US. Current level $101.20.

In FX China’s yuan grabbed the headlines as it tumbled by the most on record on speculation the central bank will widen the currency’s trading band, allowing greater volatility at a time when growth is slowing in the world’s second-largest economy.

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

• NZ        Business Confidence               IN-LINE
• UK        Consumer Confidence                        IN-LINE
• NZ        Money Supple                         BETTER
• JAPAN  Vehicle Production                  IN-LINE
• JAPAN  Housing Starts                         WORSE

See Live Macro calendar for all details

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

• BAT Kenya 2013 profit climbs, pays record dividend
• Pearson says 2014 earnings to fall
• UK outsourcer Serco appoints Rupert Soames as chief executive
• Pets at Home sets offer price range of 210-260 pence
• IAG posts consensus-beating profit in 2013
• Rightmove traffic rises 27 pct, profits jump
• William Hill plans cost cuts next year
• Punch Taverns says needs to agree consensual restructuring by April 15
• Intu Properties full-year net asset value per share falls
• Interserve buys Rentokil’s facilities services unit for 250 mln stg
• Interserve proposes placing of up to 9.99 pct of company’s share capital
• Aviva appoints Tom Stoddard as chief financial officer
• Berendsen FY revenue up 7 percent to 1.05 bln STG
• Rentokil to sell Initial Facilities unit for 250 mln pounds
• Cineworld appoints Moshe Greidinger as CEO
• UBM full-year profit rises on strong events in second half