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

UK 100 called to open +40pts at 6615, helped by US equities ending their 3-day losing streak, despite some mixed US macro data, closing with small gains ahead of the FOMC statement thanks to a calming of emerging market woes and optimism ahead of the Turkish central bank emergency decision after the US close which saw a more aggressive than expected hike in rates to shore up the troubled Lira.

Asian equities have pushed higher overnight thanks to improved risk sentiment from gains in Europe and the US and the swift action by Turkey to restore faith in emerging markets, as well as a solid South Korean Industrial Production print, all ahead of the Fed’s policy update on tapering this evening. Japan’s Nikkei leading the way thanks to a weaker JPY as safehaven flows reverse.

Yahoo! results disappointed in terms of Q1 sales guidance as the company struggles to convert growth into advertising dollars and the shares fell almost 7% after hours. Telcos group AT&T– forced to ‘shut up’ over Vodafone takeover speculation – also failed to inspire with shares -1.5% despite beating on EPS and Revenues and guidance in-line with consensus.

Note an IMF official seeing no global sell-off such as that seen last May when the Fed announced tapering, but more to do with problems from a subset of emerging markets which need to take more steps to cushion themselves from external shocks.

Overnight data included an improved Aussie Westpac Leading index but a drop in the number of skilled vacancies, while German Consumer Confidence beat the expected improvement this morning and UK House Prices showed their continued climb.

 Note results out this morning from Antofagasta (record production of copper and gold beats guidance), Anglo American (production update), Mulberry (2013 profits warning due to UK Christmas discounts). Lloyds has also pushed the button in its IPO of TSB after a failed 11^th hour bid for the 631 branches.

In focus today we have an absence of major data which would help maintain optimism in there run up to the Fed statement and taper update this evening. Listen out for results on a fifth review of Spanish banks and BoE Governor Carney speaking.

Q4 results from Boeing and Dow Chemical may be used as economic barometers before the US open, while after the US close Facebook results will likely garner much attention after Yahoo disappointed last night.

UK 100 futures made more progress overnight, getting as far as 6620 and maintaining a trend (albeit short) of rising lows from late Monday. The bull in me likes the recovery off long term rising lows at 6500. The bear in me notes the confluence of resistance around 6630 from rising, horizontal and falling highs which could slow things up.

Gold fell back as low as $1250 as safehaven demand waned thanks to the global equity sell-off reversing. Support possible at $1250 with resistance likely back at recent high $1280, but still rising lows from end 2013.

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