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

UK 100 called to open up 35 points higher once again this morning after a strong 77 point positive move in the UK Index we saw yesterday. Alcoa (the world’s leading producer of aluminium) kicked off earnings season in the US by beating analysts’ expectations (7cents per share vs 6cents expected, although shares did close down 1% in the futures market), helping to push the Dow Jones higher last night and on to it’s third consecutive day of gains.

Asian markets were positive overnight with the Hang Seng recently up 126 points at 20,708 whilst the Nikkei was up 340 points at 14,449.

In the US, the Dow Jones rallied 89 points to 15,225 whilst the S&P added 8 points at 1640. As stated above, Alcoa kicked off US reporting season with better than expected figures. Today we are expecting figures from Chevron and Yum Brands (owner of KFC/Pizza Hut/Taco Bell).

In focus today will be trading statements from Halfords, Interserve, Smiths News, and XP Power. All eyes will also be on Mark Bolland as he delivered Marks and Spencer’s AGM today. Macro data wise, manufacturing production and trade balance figures from the UK at 9:30 this morning will be key as well as the IMF’s Wold Economic Outlook/Forecasts due at 2:30pm. Lastly, UK GDP estimates at 3pm will also be key for indications on further direction for the markets.

UK 100 continues its recent upward trend, breaking one week/one month intra-day highs. 6425 then the psychological 6400 become support on the downside whilst we now look to whether the index can push through 6500 as a first resistance level to the upside.

In FX, the US NFIB optimism index and the UK industrial production as well as NIESR Gross Domestic Product (GDP) estimate data scheduled are expected to be the focus of market attention. The US $ also came off against major currency pairs as attention switched back to bond yields. The £ vs $ is trading at 1.496 whilst the £ vs € traded at 1.161.

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

• CHINA      CPI (YoY)                             BETTER
• CHINA      CPI (MoM)                          WORSE
• CHINA      PPI                                       WORSE
• AUSSIE     Business Confidence           IN-LINE

See Live Macro calendar for all details

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

• SIG forecasts lower first-half profit
• Chrysaor says Irish approve Spanish Point farm-out
• GlaxoSmithKline seeks U.S. approval for melanoma drug combination
• 3i Infrastructure income in line with expectations
• Intertek acquires UK pharmaceutical testing firm
• Ferrexpo says pellet production in first half up 11.4pct
• Aveva says makes good start to the year
• Shell names Beurden as CEO Voser’s replacement
• Scancell to raise 6.5 mln stg for pre-clinical work
• UK Mail sees Q1 performance ahead of expectations
• XP Power revenue for six months ended June 30 up 5 pct
• Sagentia buys OTM Consulting
• Smiths News says full-year revenue up marginally
• Britvic says standalone future strong as AG Barr merger clears
• Interserve reiterates current year guidance
• Wood Group says contracts in Gulf of Mexico valued at $550 million
• Marks & Spencer clothing sales fall for 8th straight quarter
• Rio Tinto begins shipping copper concentrate from Oyu Tolgoi