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

UK 100 called to open -25pts despite a rebound by Asian markets, with continued uncertainty surrounding the Cyprus bank deposit levy dominating the newsflow and a delayed parliamentary vote on the extreme measure now scheduled for 4pm today. Until a vote, Eurozone debt crisis showing political stalemate in both Cyprus and Italy.

Possible that levy structure changed (Cyprus given more flexibility) to maintain deposit guarantee insurance for amounts sub-€100,000 and focus on bigger accounts. Banks closed (although ATMs still working) to avoid any bank run and contagion risk until vote (which could be delayed yet again).

Japan’s Nikkei leading the Asian charge with a weaker JPY helping exporters and increasing focus on possible aggressive easing from the BoJ after the change of governor. US markets closed lower but not at their worst levels with all focus on the fallout from the latest news for Club-Med.

Australia weak after comments from major miner Rio Tinto saying iron ore prices may come under pressure with a combined headwind of slower demand from China and higher supply. Minutes from latest RBA meeting also weighed on sentiment with no indication of a rate cut soon, but scope for more easing to support economy if needed, and GDP seen a little below trend in 2013.

Overnight data included China Conf Board Leading Econ Index showing stable growth, and the level of annual Foreign Direct Investment rebounding in February suggesting positive sentiment on the world’s #2 economy. Japan’s Sentiment Indices final reading were lower than prelims, and to highlight the woes in Europe, New Car Registrations fell over 10% in Feb, even faster than January.

In focus today will be developments in Cyprus and the 4pm parliamentary vote. Away from this, macro data of note includes UK CPI which is seen remaining above target. Eurozone Construction Output likely to remain under pressure on account of austerity and government spending cuts.

Spain and Greece selling short term debt, likely having to pay more than before on account of regional developments. ZEW Surveys are seen stable to marginally better. US Housing, a measure of consumer confidence is seen improving in Feb after a weak January as budget bickering intensified. Speakers include ECB’s Draghi and the IMF’s Lagarde.

UK 100 trading around its overnight lows of 6440 with the rebound from yesterday’s post-Cyprus news lows of 6345 halting at the levels given up at the end of last week 6475. All eyes on parliamentary vote for next move. Lower high of 6460 overnight suggests markets still very cautious. Market sitting at mod-point of recent high 6551 and low 6345.

In FX, GBP/USD trading sideways at 1.51, although keep an eye on newsflow related to tomorrow’s UK budget which could see debt target pushed put yet again putting pressure on Sterling. EUR/USD off its worst level, but failure to recover 1.30 and 200-day moving average, meaning gates open for further falls as single currency suffers from reigniting of regional woes.

In commodities, Gold still hovering above $1600 after recovery in safehaven seeking. In Oil, US Light Crude tested new highs of $94.3 maintaining 1-month uptrend. Brent Crude off its best levels after rebound to $109.5 from 1-month lows of $108.

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

• China               Conf Board Leading Econ Index          Stable growth
• China               Foreign Direct Investment                  Better
• Japan               Leading Index                                      Deteriorated
• Japan               Coincident Index                                 Deteriorated
• India                Interest Rate                                       Unchanged
• Europe             New Car Registrations                                    Deteriorated

See Live Macro calendar for all details

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

• Rio Tinto: slower China steel demand growth to weigh on iron ore
• Cairn says exploration plan to focus on Morocco, Senegal
• Cairn acquires exploration exposure in Senegal
• Northern Petroleum cuts Netherlands reserves
• Optimal Payments says full-year profit $3.6M
• Johnston Press underlying profit falls
• Sainsbury Q4 sales beat forecasts
• UTV Media 2012 pretax profit of 21.0 mln stg vs 23.3 mln stg last year
• Domino Printing says sales in four months to end Feb ahead 11 pct
• K3 raises 2.7 mln stg via placing
• Spirit Pub says bad weather hit recent trading
• ARM says CEO to step down, group president to take helm
• Mears posts 2012 profit growth of 7 pct