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

UK 100 called to open 30pts, helped by better than expected Q2 GDP data from both France and Germany, easing concerns that the Eurozone figure at 10am will be as weak as consensus (-0.2%) had been looking for. It may even escape contraction, with the core nations helping offset the biting austerity in place elsewhere in the region.

Asian equities in the green (China still struggling after last week’s poor macro data) despite slightly weak handover from US bourses (though US recovered into the close), although world central bank stimulus optimism was boosted by Bank of Japan (BoJ) minutes showing that a few committee members reiterated view that bank should stand ready to take action, this after weak GDP yesterday.

In terms of macro data, UK house prices declined again, and more than expected, with the RICS index hitting its lowest level since June 2011. French inflation data was pretty much in-line.

European and Asian markets offsetting quiet start to the week in US where trading volumes were extremely light (as they were elsewhere) and recent gains were being considered profit taking opportunities after news of a new German challenge being launched against the new European bailout fund the European Stability Mechanism (ESM), which threatens to delay its already delayed approval. The ESM is needed if Europe is to boost the size of its sovereign bond fire-fighting operation.

Today’s focus likely on UK price inflation (consumer CPI and Retail RPI) where expectations are for a slight cooling of price rises, this is despite commodity prices having risen again recently in-line with the recent gains by equities and an increase in risk appetite. Eurozone Q2 GDP is expected at -0.2% however, with France and Germany having beaten expectations (France escaped negative growth) this morning, consensus could be too pessimistic, although we think that contraction is still on the cards.

Eurozone Industrial production is expected to show a monthly decline but an improvement in annual contraction as consumption from both within and outside Europe slows. Thereafter US retail Sales will be keenyl watched for any unexpected slowing which might twist Federal Reserve Chairman Bernanke’s arm into launching more monetary stimulus, to encourage/maintain growth.

We’ve had corporates results out this morning from UK financial Standard Life. Earnings per share appear to be better than expected. As always though, the devil can lurk in the detail.

As always, call in for a chat with your dedicated trader for a full up-to date roundup of the markets.

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

• UK                    RICS House Prices                   Worse
• Japan               tertiary Industry Index            Better
• France             Inflation                                   In-line
• France             GDP                                         Better
• Germany         GDP                                         Mixed
• See Live Macro calendar for all details

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

• ReNeuron gets okay to test higher dose in stem cell trial
• Manganese Bronze – Delay to Half-Year Results Announcement
• Henderson profits drop as clients exit
• BAA July traffic down as Britons stay home for Olympics
• Vitec sells staging business
• Ark Therapeutics Inks Collaboration Pact with EMD Millipore
• JKX Oil & Gas Production Falls 21% But Revenue Flat on Lower Costs
• Statoil Sells 25% Stake in Mozambique Licence To Tullow Oil
• Standard Life Sees Improving Business As Profit Rises 15%
• CRH Posts 23% Rise in 1H Profit, FY EBITDA to be Similar to 2011 Level
• AstraZeneca Ups FY Core EPS Target by $0.16 On Nexium Deal With Pfizer
• EnQuest H1 Production Falls But Sees FY in Line
• Cobham Awarded $30M Embraer Contract for KC-390 Tanker Aircraft
• Centamin On Track For FY After Record 2Q Gold Production
• Essar: Vadinar Throughput +24% in Quarter to June; Debt in Line With plan