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

UK 100 called to open +20pts, with most Asian indices higher after a positive handover from the US where the Dow Jones hit a fresh all time record high and the S&P closed within a whisker of it thanks to some encouraging macro data (durable goods orders + housing) offsetting some of the on-going concerns from Cyprus and mixed messages from EU politicians (Special case? Template? Change to EU law?).

The extent of haircuts on insured >€100K depositors remains unknown (figures of 20, 40, 80%?) and capital controls look set to be very restrictive when banks eventually re-open (today? tomorrow?) to avoid a bank-run and or contagion to Italy/Spain.

Australia outperforming thanks to its financials benefiting from a positive semi-annual review of the sector by the RBA. In Japan, marginal gains thanks to a weakening in the JPY ahead of next week’s BoJ policy meeting and PM Abe keeping the pressure on for aggressive action (monetary easing, QE).

Geopolitical tensions continue to bubble on the Korean peninsula with the North making itself combat ready and giving notice to the UN security council that a war situation had been established with the South and the US. Macro data of note includes German Import Prices, unchanged German GFK Consumer Confidence and an improvement in the Swiss UBS Consumption Indicator.

In focus today, we have UK GDP and Eurozone Confidence readings with the former seen confirmed (final reading) at -0.3% in Q4 (+0.3% over the year) and the latter all taking a step back after some progress earlier in the year. In the afternoon, US Pending Home Sales seen a bit weaker in February, adding to the mix of housing data yesterday.

UK 100 remains in its 6360-6480 range while uncertainty prevails from Cyprus and mixed messages continue to emerge from those deciding the fate of the island nation and more importantly the future way of doing things in the Eurozone. Over the longer term, the 3 month graph maintains its upward bias, with support at 6350, however, resistance still likely around Monday’s highs of 6460.

Gold back below $1600 as equities maintain their 2-day uptrend despite much uncertainty surrounding the Eurozone, with the yellow metal dented by a stronger USD. US light Crude rallied to above $96.5 overnight on encouraging US macro data. Brent Crude regained $109.5 last traded 6-days ago although it is back off its best levels.

In FX, GBP/USD pulled back to yesterday’s lows of 1.515, off its highs of the last month registered earlier in the week as the greenback benefits from some safe-haven seeking (explaining the weaker Gold price). EUR/USD maintains its downtrend of the last 2 months, trading down near 3-month lows of 1.28 on Cyprus and Eurozone worries.

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

• Germany         Import Price Index                  Better
• Germany         GFK Consumer Confidence     In-line, unchanged
• Switz                UBS Consumer Indicator         Improved

See Live Macro calendar for all details

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

• ICAP says expects 13 pct revenue drop
• BlackBerry targeted by short sellers as market awaits results
• Enquest says Alma project on track for production in Q4
• Entertainment One sees FY in line with its expectations
• Centamin full-year core earnings rise 10 pct
• National Express Group wins deals in UK and U.S.
• Daisy Group agrees new £200 mln bank facility
• Vesuvius says sale of precious metals processing unit for 56.8 mln euros
• Speedy Hire wins three-year contract with National Grid
• Amara Mining full-year pretax profit falls
• TUI Travel upbeat as summer bookings rise
• Topps Tiles forecasts lower first half profit
• Primary Health Prop refinances debt
• Numis sees profits ahead of year ago
• RM says trading in line
• Wood Group gets North Sea contract extension