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

UK 100 is called to open -40 points at 6755, following an unexpected collapse in China’s manufacturing sector which saw HSBC’s flash PMI at a 7-month low of 48.3 vs expectations of 49.5. In the US, markets were all negative with Dow Jones finishing in the red by 89 points at 16040 and now currently over 200 points off yesterday’s high of 16220 in the futures. The Nasdaq also fell back from 13-month highs dropping 35 points. Yesterday’s minutes from the Fed revealed little consensus on when short-term rates would rise again.

In focus today we have a raft of macro-data from the EU with German PMI data out at 8.30am. Following the weaker Chinese data focus will also shift to US CPI data at 13:30pm and US Markit PMI at 13:58pm. With futures on al indices currently negative this can have a major impact for traders.

The recent rally in the UK Index saw 6800 prove a difficult hurdle to break with ex-dividends yesterday taking 14 points off the index, with current support still at 6725 and 6675. For all global indices, round numbers yesterday proved to be significant levels of resistance with UK Index at 6800, DOW at 16200 and DAX at 9700.

Results today: BAE Systems (BA..L) Reports a 2% rise in sales to 18.2bn, FY underlying EBITA of £1.93bn with a 3% rise in FY dividend to 20.1p,. 3% rise in FY profit in line with expectations but said it expected continuing US budget pressures to reduce EPS by 5-10% this year compared to 2013. Centrica (CNA.L) FY profit £950m, basic EPS 26.6p unchanged. Profit £2,695m vs. £2,743m. FY div/shr 17p vs. 16.4p sees 2014 group adjusted EPS lower than 2013. FY revenue £26.6bn vs. £23.9bn, market conditions to remain challenging in 2014. Rexam (REX.L) FY sales 3.94bn vs. £3.89bn. Underlying pretax profit up 4% £372m Total dividend up 14% to 17.4p p/sh. Go–Ahead (GOG.L) 30.8% rise in H1 profit and said its overall results were in line with expectations due to record passenger numbers in bus and rail. Pretax profit of £40.3m. Revenue up 5.7% at £1.37bn, FY expectations were unchanged.

In commodities, Gold continue to rally, just shy of three month  highs as signs that the U.S. economy wasn’t recovering in line with expectations boosted demand for a haven. UBS have also increased their target to $1280 from $1180 due to this. Currently trading about $13 off recent highs at $1313.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – all part of the service.

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

• Japan       Supermarket Sales              IN-LINE
• China       Flash PMI                            WORSE
• NZ            Consumer Confidence        IN-LINE

See Live Macro calendar for all details

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

• India cabinet approves GlaxoSmithKline’s 63.90 bln rupees stake buy in unit
• Harvey Nash sees FY in line with market forecasts
• EE says 4G customer base hits 2 million
• Petrofac says awarded Oman contract by BP
• Flybe to raise 150 mln stg in placing
• Essentra revenue rises 20 pct to 789 mln pounds
• Playtech announces special dividend as profits rise
• Rathbones profits up 15 pct as markets rise
• BAE sees earnings per share falling by 5-10 pct in 2014
• Go–Ahead H1 profits up 30 pct on record passenger numbers
• Petra Diamonds sees ‘solid’ results from tenders in H2
• Rexam full-year underlying pretax profit rises 4 pct
• Micro Focus says trading in line with expectations
• Centrica profits fall amid higher supply costs