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

UK 100 called to open +10pts, helped by Japanese equities getting another boost from the launch of a much anticipated fresh stimulus package expected to add 2% to its struggling GDP and create 600K jobs. This has weighed yet further on the Japanese Yen (JPY) but continued to provide support for equities of its exporters, with the recently elected PM Abe having an early impact.

In addition to calls for the Bank of Japan (BoJ) to adopt a 2% inflation target is demand for adoption of a maximum employment target to help revive the economy which reported a worsening in its trade balance and current account overnight.

Overnight macro data comprised slightly higher China Consumer Price Inflation (CPI), and an acceleration on the prior month, however, Producer Price Inflation (PPI) remained under pressure although a little less than previously. The aggregate of the news, suggests less wiggle room for policy easing to maintain its economic recovery (a disappointment after the strong trade balance data yesterday) and seen Shanghai equities put in the worst performance overnight in a weak session for Asia ex-Japan.

Japanese equities also helped by much stronger than expected Japanese Eco Watcher Surveys. For watchers of emerging markets, India’s industrial production also missed expectations with a slump to negative.

In focus today will be the UK’s Industrial and Manufacturing Production growth figures with growth expected to have rebounded in November. Spanish Industrial Output also released at the market open may be watched given the nation’s growth woes.

In the afternoon we have the US Trade Balance and an updated estimate on UK GDP, however, all eyes will likely be on US bank Wells Fargo at 1pm as it is the first of the major financials to update the markets on Q4 results.

US markets closed higher helped by the increased appetite for risk after European Central Bank (ECB) president Mario Draghi closed the door on rate cuts and saw the Euro (EUR) favoured over the US dollar (USD) on the prospect of the region doing better, and resulting in a flow out of the greenback safehaven and into risk assets such as equities and the now relatively cheaper dollar-denominated commodities.

The UK 100 is back around that 6110 level where it spent a lot of yesterday, although it try higher after Draghi Spoke, followed by a sell-off to 6090 and then a recovery to 6130 after the Japanese stimulus news. We have since traded back again after the worse China news which, as the world’s #2 nation, may weigh more on sentiment this morning.

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Happy Friday!

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

• China               Consumer Price Index             Better
• China               Producer Prices Index             Worse
• Japan               Eco Watchers Surveys             Better
• India                Industrial Production              Worse
• See Live Macro calendar for all details

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

• Laird says well placed to meet expectations for 2012
• Moneysupermarket.com expects FY adj revenue to rise
• Centaur Media sees first half results in line
• Tullow plans busy start to 2013 drilling year
• Porvair wins 11.3 mln stg UK government contract
• Stanley Gibbons sees 2012 profits in line with expectations
• Polar Capital sees assets rise by 18% to $6 bln
• Theo Fennell sees FY results below management expectations
• Westhouse to cancel AIM listing