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

UK 100 called to open -15pts, with Asian markets kicking off the trading week on a cautious note. After another Asian economy reported evidence of slowing growth, and China has delayed policy easing. Japan posted much weaker than expected Q2 GDP growth, which follows on from two days of slowing data from China last Thursday and Friday.

This has offset the positive close by US markets which rallied on support from better import price data, some dovish commentary by a Fed member, German press discussing a German referendum on the EU and a better than expected US Monthly budget statement.

Markets may still be waiting for the People Bank of China (PBOC) to react to weak Chinese data by easing policy, however, it looks like authorities have in fact delayed another cut in the banks’ reserve requirement ratio (RRR) seeing other measures as currently adequate.

Gold ticked back towards Friday’s highs on the poor Japanese data, but it has since pulled back towards $1620 support. This helped by USD strengthening overnight versus GBP. EUR/USD within Friday’s range. GBP still testing highs vs EUR. Brent Crude maintained upward trend top hit $114, but US Light Crude off overnight highs.

Today’s focus likely on Greece GDP figures, which is likely to show continued contraction, impacted by the combined effect of bailouts and eurozone exit risk as well as harsh but necessary austerity. Thereafter the macro calendar is very quiet (not uncommon at the August mid-point).

We’ve had corporates results out this morning from German utilities giant E.ON, as well as UK names Ithica Energy (IAE), Michael Page (MPI) and Petrofac (PFC). For more information on corporate results, call in to speak to our friendly trading floor.

This week the focus will remain on central banks and rate setters. The Bank of England (BoE) publishes the minutes of its last meeting, and the text will be scrutinised for signs of more quantitative easing (QE), especially after the cuts to growth forecasts last week in the bank’s quarterly inflation report.

In a recessionary environment, Retail sales in the UK are expected to again be weak, but with a slight save from the first few days of the Olympics, offsetting cool and wet weather. UK Unemployment should hold steady. The first estimate of Eurozone GDP is likely to have contracted in Q2 (France negative, Germany just hanging on).

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

• Japan               GDP                                         Worse
• Germany         Wholesale Price Index                        Growth rebounds
• See Live Macro calendar for all details

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

• Petrofac confident on profit targets despite contract delays
• Mediterranean Oil to seek production concession for Ombrina mare field
• Antrim Energy interim financial report – second quarter 2012
• BP to sell Texas midstream gas assets
• Ithaca energy Q2 & H1 2012 financial results
• Michael Page Half Yearly Report
• Serica Energy Q2 2012 Results