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

UK 100 called to open 25 points higher this morning looking to stretch its consecutive daily gains to nine! This morning’s move is thanks to better than expected US retail sales we saw yesterday which also helped to push the S&P to yet another all-time high of 1,634. The Dow Jones however didn’t manage to follow suit, closing down 26 points at 15,091.

In Asia, a pretty flat market hasn’t given us much to shout about. US retail sales did help push Asian markets higher before they paused for breath and then sold off into the close. The Hang Seng closed down 57 points at 22,932 whilst the Nikkei was recently down 4 points at Nikkei.

There is some significant stock specific news worth bringing to your attention this morning. Firstly, trading updates have been delivered by Babcock Int Plc (BAB.L) reporting FY profits up 16% and ICAP Plc (IAP.L) informing the market FY profits have declined by 20%. Secondly, keep an eye on Lonmin Plc, workers at the South African operations of the platinum producer have gone on a wildcat strike, a spokesman for the National Union of Mineworkers said. “All operations are down at Lonmin”. Betfair shares could be set for a sharp decline as it confirms takeover discussions with CVC Capital Partners have been terminated. Finally, Severn Trent could be the stand-out performer, the British water company confirmed on Tuesday it had received a takeover approach from a consortium including Borealis Infrastructure and the Kuwait Investment Office. The group said the approach was at a very early stage and that no proposal had been made. The consortium is willing to offer between 2200p and 2300p a share.

Be aware, German confidence figures due at 10:00 GMT. A ‘miss’ or ‘beat’ by any distance could prove the catalyst to push the UK 100 towards 6700 or spark profit taking/short covering. Consult the Live Macro Calendar for the data as-it-breaks.

With limited macro data due today, attention will be focused on the Ecofin meetings which should shed some light on the banking union discussions between European policymakers.

UK 100 pushing on to new 5-year highs. As stated previously, eight days of consecutive gains have helped push UK’s flagship index through recent resistance. 1-month uptrend still valid but 3-month graph shows the steepness of the recent ascent, which increasing the chances of brief correction being necessary for it to continue. If we do not see a short-term correction, the next upside target to look for would be 6,740/50.

In FX, GBP/USD still trading around one-week lows of 1.53 on USD strength, helped by continued Eurozone concerns. EUR/USD finds support at 1.295 as previously stated and we now sit at 1.30.

Gold broke out of its sideways $1440-1480 range to push through to $1442 currently.

US Light Crude Oil fell to $95 on further signs of increased global production and weakening demand from China. Industrial production numbers from China came in at 9.3% vs the 9.5% expected.

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

• Japan               Domestic CGPI                        In-Line
• UK                    RICS House Prices       In-Line

See Live Macro calendar for all details

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

• Workers at Lonmin’s S.African operations on wildcat strike
• British Land full year NAV up 0.2 pct, profits rise
• Babcock full-year profit jumps 16 percent
• IAG launches bond issue to fund Vueling purchase
• Balfour says no change in trading
• Amerisur says Platanillo field production constrained by export conditions
• Betfair and CVC terminate takeover discussions
• Enterprise Inns first half profit falls 14 pct
• Capita says 2013 started well, sees yr in line with view
• Afren says Lekoil to become partner on OPL 310 licence
• Sportech says trading in line with expectations
• CWC agrees alliance with Columbus Networks
• BG resets 2015 oil, gas output target at 775,000-825,000 barrels/day
• Severn Trent confirms Borealis and Kuwait takeover approach
• APR Energy says Q1 pro forma revenue down to $43 mln from $78 mln
• Hochschild Mining outlines progress on cash flow plans
• Broker ICAP posts 20 percent fall in full-year profit