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

The UK 100 is called -20 points at 6790 as European equity markets continues to fall. Having closed lower by 32 points yesterday finishing just below 6800 hit by weak sentiment and negative news by Tesco and ITV. Meanwhile the US markets finished flat to higher on the back of better than expected US home sales. The Dow finished 18 points higher whilst the S&P failed to hold onto record highs. Asian markets were mostly higher with fears over the yuan continuing. The Hang Seng finished up over 1.2% helped by SJM Holdings, Asia’s biggest casino operator beating expectations, whist the Nikkei finished in the red down slightly by 0.3%.

In focus today apart from a raft of blue-chip companies reporting we have a significant amount of macro-data to keep an eye on. This morning in Europe we have German unemployment change and rate at 8:55am, followed closely by German CPI data out at 13:00pm. Over to the states we have US Durable Goods order expected to come in at -1.7%. With the Dow finishing in the blue and trading above the 16200 level this could cause a major move. Unfortunately the news flow doesn’t end there with Fed chief Yellen testifying to the Senate again. The UK Index treaded water for most of yesterday remaining in the red at the support level of 6800, with support now at 6750.

Results today: British American Tobacco (BATS.L) Operating Profit up 6% at £5.82bn vs £5.78bn expected, FY EPS 216.6p vs. 217.2p, final dividend 97.4p vs. est 97p, “difficult trading conditions persist” Royal Bank of Scotland (RBS.L) FY operating loss of £8.2bn vs. £6.7bn expected, allocating £576m vs. £679m to bonuses, sells stake in Direct Line £1.1bn. WPP (WPP.L) FY Revenue £11bn vs £11.1bn ecpected, profit £937m, EPS 69.6p, annual sales rise 6.2% fuelled by growth in north America. Barratt Developments (BDEV.L) H1 pretax profit 162.3% to £120.4m, interim dividend 3.2p p/sh, revenue £1,265m up 33%, expects to deliver FY profit towards tope end of expectations. Merlin Entertainment (MERL.L) FY underlying net income £162m vs. £153m expected, FY revenue £1.19bn vs. £1.18bn expected. EBITDA £390m vs. £387m.

AO World jumped 32% from its IPO price of 285p on its stock market debut yesterday closing at 378p. The online appliance specialist founded by John Roberts 14 years ago, saw its market value increase to £1.6bn on the first day of conditional trading. Numis, Jefferis and JP Morgan Cazenove stopped their book building a day earlier than planned due to the IPO being “multiple times oversubscribed”. Nick Bubb a retail analyst has said “AO has yet to prove that its recent success is sustainable or show that it can grow outside the UK”.

In commodities, gold fell on profit taking and amid speculation the Federal Reserve will continue stimulus cuts, following better than expected housing data. Trading now at $1327, gold struggled to breach the $1350 level. Despite support at $1300 level, Yellen’s testimony could significantly change this. Copper continued to fall, now heading for seventh day of losses amid concerns growth in China is slowing down. WTI trimmed monthly gains down 30 cents at $102.2, whilst Brent also slid below the $110 level.

In FX the dollar was trading near a two-week high against major peers amid prospects that the Fed will scale down is bond purchases with USD/EUR at $1.369.

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

• Aussie  Private Capital Expenditure    WORSE
• China   GDP                                         WORSE

See Live Macro calendar for all details

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

• BP loses bid to block seafood fund payments
• S.Africa platinum strike talks to resume Friday – Implats
• Merlin Entertainments annual profit up 12.8 pct
• Countrywide full-year income rises 11 pct
• Countrywide says CEO to step down this year
• Domino’s Pizza year profit up 1.9 pct
• Spirent full-year pretax profit falls 64 pct
• WPP ups share buyback after strong 2013
• Howden Joinery says full-year pretax profit 138.4 mln stg
• Barratt Developments profits up 162.3 pct, to pay out 365 mln stg over 3 years
• RPS posts rise in full-year PBTA to 63 mln stg
• Kier first-half underlying pretax profit jumps 90 pct
• Colt reports 4 pct drop in FY adjusted EBITDA
• Man Group sees money leave in 2013 but at a slower pace
• RBS to streamline, cut costs by 5 bln stg
• RBS to refocus on UK after $13.6 bln 2013 loss
• British American Tobacco annual earnings rise 6 pct
• Fund manager Jupiter’s profits up by over a half
• Chemring says revenue falls to 118.3 mln stg for three months ended Jan 31
• Reed Elsevier ‘confident’ on 2014 after full-year earnings rise
• Premier Oil 2013 profit after tax falls on production downgrades
• Capita full year profit up 14 percent, confident for year ahead
• Kazakhmys considers restructuring as core profit falls
• RSA unveils $1.3 billion rights issue
• Spectris FY sales rose 1.8 percent to 1.2 bln stg
• Whitbread sees profit at top of forecasts after strong trading