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

UK 100 called to open –20 points at 6433 as with investors jittery about the next move by the European Central Bank

Despite the weaker than expected US factory orders in jittery trading conditions, the US markets managed to recover some small gains yesterday with all US indices slightly positive (DOW +0.47%, S&P +0.76%, NASDAQ +0.86%). Overnight we heard comments from the Fed’s Evan that it is still unlikely rates will rise until 2015.

In Asia we saw mixed finishes with the Japanese Nikkei rebounding from lowest levels in 5 years to finish up 1.2%, having fallen 10% from recent highs – bargain hunters on the look for cheap stock. Investors also cheered earnings from Japanese companies with Panasonic up some 21% following earnings.  Elsewhere both the Hang Seng and ASX both finished slightly lower ( -0.4% and -0.5%). Markets in China remain closed for Lunar New Year holiday.

In focus today we have services PMI from the UK at 9:30am whereby we are expecting a slight improvement to 59. Elsewhere we have  US ADP Data at 13:15pm which as always will be seen as a precursor to the main event of the Non-Farm Payrolls on Friday. With expectations of +185K, will good data finally be seen as good and bad data seen as bad?

The UK 100 ’s overnight weakness continues the theme from yesterday testing the 6400 level once more. Will this prove significant and hold up? Having seen Monday’s reaction to weak ISM data keep a close eye on the ADP data as this could very quickly shift sentiment.

Gold continues to trade above $1250 as its safehaven appeal still keeping it afloat. WTI rose once more to $97.90 as speculation US inventories will fall amid the cold weather.

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

• UK            Shop Price Index                 Accelerating
• Japan       Labor Cash Earnings           In-Line
• China       Real Estate Index                In-Line

See Live Macro calendar for all details

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

• Unite Group buys prime Aberdeen site
• PayPoint says Warren Tucker to succeed David Newlands as chairman
• Daily Mail Q1 revenue up 6 pct year-on-year
• Wolfson Micro swings to fourth-quarter loss
• ICAP says third quarter revenue down 6 percent
• Hargreaves Lansdown client numbers lifted by Royal Mail float
• S&U says trading in line with market expectations
• BP vows to return more cash to shareholders
• GW Pharma Q1 revenue rises 44 pct
• RSA has appointed former Royal Bank of Scotland boss Stephen Hester