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

UK Index called to open +15 points , as the feel-good factor continues after equity markets around the world rallied from the bond buying plan unveiled by ECB President Mario Draghi and the release of better than expected US macro data.  The  UK 100 rose by 120 points and the Dow Jones soared 244 points to 13,292 to post the highest close  since December 2007.  Overnight, Asian markets extended the mood of optimism by taking the biggest daily gain in nearly five weeks.

Draghi’s outlined details for the bond buying programme – Outright Monetary Transactions – in efforts to curb the borrowing costs of distressed EU nations.  This may not quite be the bazooka to relieve the structural problems in Europe, however, a line in the sand was clearly drawn by the Italian.  The ECB will stand ready to buy short dated 1 year – 3 year bonds in the secondary market in an “unlimited” capacity, but under the proviso that countries have already gone to the EFSF and EU.  Confidence will be seen by monitoring the Italian and Spanish bond yields in the coming weeks.

Looking at Commodities , Gold retreated from the year high of above $1710/oz after profit taking but still showing eager bets of stimulus action from central banks.  Crude Oil had a volatile session ranging between $98-$95/barrel, taking effect from US macro data but also a rise in inventories.

Today’s focus is likely to be on the US Non-Farm Payrolls (NFP) as it is the most widely followed piece of macro data giving an idea of how the most important economy in the world is doing in terms of employment.  The release at 1.30pm is expected to be in the region of 120,000 – but many analyst forecasts have been revised up as a result of the high reading from ADP private-sector survey yesterday.

The Glencore-Xstrata deal will be in the spotlight this morning, with both sets of shareholders due to vote on the $34-billion deal.  If Glencore does not increase their bid from 2.8 new shares, it is more than likely than the leading Xstrata shareholder, Qatar Holding, will scupper the deal.  If Ivan Glasenberg initiates a higher bid, up to 3.25 new shares, more time would be on offer to Xstrata shareholders to mull it over.  Expect last-minute deal negotiations and a possible twist to end the six-month long saga.

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

• AUSSIE             Trade Balance                         WORSE
• EUR                 German Current A/Cs             WORSE
• EUR                 German Exports MoM            BETTER

See Live Macro calendar for all details

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

• Glencore/Xstrata deal stands on the brink of collapse
• Interserve preferred bidder for £300m NHS contract
• Petra Diamonds says fissure mines on the block
• SThree says committed to dividend growth
• Interserve preferred bidder for 300 mln stg NHS deal