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

UK 100 called to open +15pts at 6630 maintaining their advance from Friday and positive close to the week and the recent bounce from 6500, helped by hopes of stimulus/intervention from both China and Europe’s Central Banks (PBOC + ECB) supporting the natural resources sector.

 On the China front, note press reports this morning  that China’s biggest banks more than doubled their write-offs last year, in a sign that financial strains are mounting in  the slowing #2 economy. More reason for intervention? Or will it just add fuel to the fire? Major Asian markets unperturbed.

 US markets, however, did demonstrate some reluctance to be overtly long into the weekend with the Ukrainian situation remaining difficult (Moody’s put Russia rating on review for downgrade) or could things be calming slightly with diplomatic efforts? Some US data points solid (personal income and spending, Uni of Michigan) but failing to inspire, with some brokers even reducing Q1 GDP forecasts slightly.

 Overnight macro data, showed UK house prices (Hometrack measurement) maintaining their buoyancy, and German Retail Sales will offer some hope ahead of the Europe consumer price inflation reading this morning, however Japan reported a host of disappointing numbers demonstrating slowing growth in PMI Manufacturing, Vehicle production, Housing Starts, Construction orders and Industrial Production.

 In focus today we have UK Consumer Lending and Mortgage approvals which will give an update on consumer confidence. Still hungry for property? Eurozone CPI will be keenly watched given the weak German and Spanish readings last week. Disinflation still threatening? ECB going to be forced to act, this week?

In the afternoon, US Chicago PMI seen flat. Fed Chair Yellen speaks and will surely be looked to for clarification on her recent timings for QE-end and rate rises. The Dallas Fed Manufacturing index is seen improving.

In commodities: Copper drops 0.40% to $7,512 and is set for its biggest quarterly drop since June on concerns of a slowdown in China. Gold trades at $1,296 and is set for its first monthly loss in 2014 on as Federal Reserve continues to reduce stimulus. WTI oil trades at $101.45 a barrel as Brent crude fell to $107.90 as the US and Russia sought to defuse the crisis over Ukraine.

In FX: Euro is near a one month low at $1.3753 against the Dollar, 141.47 against the Yen before data today that may show inflation in the currency’s region as speculation rises that the ECB may outline stimulus measures at this week’s meeting.

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

• UK        Hometrack Housing Survey                 Mixed
• JP         Markit/JMMA Manufacturing PMI      Deteriorated
• JP         Industrial Production                           Worse, Slowed
• JP         Vehicle Production                              Deteriorated
• JP         Housing Starts                                     Worse, Slowed
• JP         Construction Orders                            Deteriorated
• DE        Retail   Sales                                        Better, improved

See Live Macro calendar for all details

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

• Rolls Royce wins $50 million U.S. marine contract
• British Land cancels first mortgage debenture bonds 2028
• Shanks sees full-year results in line with expectations
• Kier says Mersey Gateway Project reaches financial close
• Carillion named preferred bidder for 200 mln stg contract
• IGas finds UK shale formations on site near Manchester
• UK online retailer Boohoo.com says met year forecasts