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

UK 100 called to open +30pts after US markets closed higher on reports from major economies’ central bankers were prepped to provide liquidity to financial markets if necessary after Sunday’s Greek re-elections. Expectations supported by Bank of England (BoE) Governor King’s  Mansion House speech alluding to the possibility of more monetary easing, and the Chancellor of the Exchequer Osborne announcing new measures totalling £100bn. Expectations also supported by more weak US data (Jobs, inflation) which may see the US Federal Reserve (Fed) add more stimulus next week.

Asian markets positive thanks to sentiment being boosted by the hopes of central back liquidity stimulus, however, gains evidently held back by caution ahead of the weekend’s Greek elections where a Eurozone exit is a real possibility and the fact that Spanish bond yields have again risen to a level (7%) at with Greece, Ireland and Portugal were required to ask for help, despite last weekend’s agreement in principle for aid.

There is, however, talk of EU plans for incentives for Athens to convince it to adhere to bailout terms and stay in the single currency bloc. It is not clear however they are being offered all parties with New Democracy wanting to run with terms of existing assistance, but Syriza wanting to tear up existing deal and go it alone.

Macro data overnight limited to Bank of Japan (BoJ) leaving rates and its stimulus plan unchanged, however, it did say that it would continue to pursue powerful monetary easing while it also upgraded its economic assessment. EU new car registrations have shown another month of contraction.

Looking to FX and commodities, USD is weaker on the prospect of monetary easing round the world, which is dampening demand for the traditional greenback safehaven. The knock-on effect has seen the price of Gold and the Oils inch up overnight. Gold still has to contend with resistance via a 3.5-month falling resistance and the long term broken support. Oils also benefiting from OPEC meeting agreeing to keep production ceiling unchanged.

Macro data of note today will be Eurozone Employment as the region continues to suffer from its sovereign debt crisis and economic slowdown. We close the week with US data, sentiment from the New York State Manufacturing managers expected to have fallen. Thereafter, US Industrial and Manufacturing Production are seen sowing little if any growth, while Uni of Michigan consumer confidence is seen dropping back from last month’s level.

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

• Japan               Interest rates                          Unchanged
• Europe             New Car Registrations         Contraction worsend
• See Live Macro calendar for all details

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

• Premier Foods sells vinegar, pickles units to Mizkan
• Aggreko sees strong H1, ups fleet investment
• Lamprell delivers project on time, to repay debt
• Diageo increases stake in Vietnam’s Halico
• Flybe extends Brussels Airlines contract flying deal
• SSE buys electricity generation assets in Ireland
• Plus Markets says to dispose of Trading Solutions arm
• John Lewis weekly dept store sales up 18 pct

Morning Press Selection:

• Osborne’s £100bn plan for UK economy – FT.com – UK Economy http://on.ft.com/MKqLyW
• Central bankers brace for euro break-up – FT.com – Currencies http://on.ft.com/LXicS4
• Lex in depth: Glencore – FT.com – Analysis http://on.ft.com/Ld2ara
• Merkel stands firm on tackling crisis – FT.com – EU Economy http://on.ft.com/MSIK9W
• EU plans incentives for new Greek leaders – FT.com – Europe http://on.ft.com/M8kv54
• Sombre Spanish lessons on fighting credit bubbles – FT.com – Opinion http://on.ft.com/LcQrce
• Euro fix might be a useful halfway house – FT.com – Markets http://on.ft.com/LqqBwM
• Waves bash sterling haven – FT.com – Currencies http://on.ft.com/MKtb0x