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

UK 100 called to open -10pts, after a quiet US session with equities largely unchanged and markets back in their now habitual “wait-and-see” mode ahead of the eagerly anticipated annual Jackson Hole economic symposium (more importantly whether US Federal Reserve (Fed) Chairman Bernanke will use his speech slot [as it 2010] to announce something stimulus-positive and risk-asset boosting) and the second estimate of Q2 US GDP on Wednesday.

European markets managed a fairly positive session (UK markets closed), despite weak UK Housing, deteriorating Chinese Industrial Profits and mixed German IFO data, after the Dallas Fed printed a significant improvement (although it is yet another piece of conflicting and stimulus-negative data). US Fed members maintained their comment tennis with some hawkish (against anti-stimulus) and others dovish (pro-stimulus).

Eurozone woes not forgotten with European Central Bank (ECB) members maintaining pressure on Italy and Spain to request bailout in order to allow the ECB to step into the sovereign bond markets to reduce their borrowing costs. French president Hollande says the time has come for ESM (bailout fund) in conjunction with ECB to put its instruments into action. There were also reports that a further €18bn of cost cuts would be demanded of Greece is it wanted the 2-year bailout extension it desires.

Overnight, Asian markets muted with concerns still aplenty on China’s economic slowdown, especially after Japan’s government downgraded the nations view of economic growth (first time in 10 months; slowing exports, weak consumer spending) and whether Jackson Hole will be used as a platform for stimulus announcements, or not as it is increasingly expected (The Daily Telegraph citing economists downplaying prospects) with data-flow continuing to be neither bad enough to suggest need for action nor good enough to suggest economic recovery.

In the Commodities Gold fallen back from 12-month trendline over falling highs with hopes for stimulus waning. The Oils are off their recent highs but note that the threat of hurricanes in the Gulf of Mexico has seen production facilities battening down operations In FX, USD stronger vs. GBP and EUR as Fed stimulus hopes fade.

Today’s macro data is very US-focused with Housing, Consumer Confidence and Richmond Fed manufacturing. Housing is expected to show growth, but less that last month. Consumer confidence is seen flat to a touch higher, while Richmond Fed manufacturing index should show a good bounce similar to that of the Dallas Fed yesterday. However, watch out for Spanish GDP on the market-open as well as Spanish (short-term) and Italian (longer term) debt sales as this could sway Eurozone sentiment if costs/demand disappoint.

As always, have a chat with your friendly trader for anything other information you require.

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

• Aussie              HIA New Home Sales                          Deteriorated
• Japan               Small Business Confidence                 Deteriorated  
• Germany         GFK Consumer Confidence                 Flat, Better
• Switz                UBS Consumer Indicator                     Deteriorated
• See Live Macro calendar for all details

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

• G4S cuts 1,100 jobs after Olympics failure
• Red Emperor Resources  Trading suspension lifted after announcement
• Eurasia Drilling says H1 net profit up 24% to $181m
• Archipelago Resources – Notice of Interim results 2012
• Chemring cuts operating profit expectations for full year
• Bunzl H1 profit up 9 pct, sees continued growth
• Yule Catto sees FY profit ahead of last year
• Cairn Energy takes position in San Leon’s Moroccan block
• Solo Oil: Full-Scale Oil Production has Commenced at The Ausable Field
• Balfour Beatty Preferred Bidder for Edinburgh University Accommodation Project
• Range Resources Shabeel North Well Doesn’t Find Oil, Gas
• Verona Pharma secures US patent for Lead drug candidate
• AstraZeneca: EC Grants Marketing Authorisation To Zinforo
• Uganda, Heritage Oil Tax Dispute Proceedings Should Be Made Public – Activists
• Argos Resources Ltd 2012 Interim Financial Results