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

UK 100 called to open -20pts, with Asian markets seeing growth sensitive stocks lower after some weak macro data and ahead of the Jackson Hole meeting. Investors cautious, despite upwardly revised US Q2 GDP (expected by consensus) which still seen as too low to dilute possibility of US Federal Reserve (Fed) Chairman Bernanke announcing more monetary stimulus (QE; quantitative easing) tomorrow, but continued drip feed of better-than-expected US data (yesterday it was US Pending Home Sales) clouding views.

US markets were unable to make minor gains after the European close, with the Fed Beige Book (summary of current economic conditions) giving next-to-no impetus – similar tone to last month (like Bernanke’s recent speeches, “still ready to act, when necessary”) with still gradual economic growth but improving retail data.

European markets finished mixed, with no major gainer/loser, as many keep powder dry ahead of Bernanke’s speech, with positive US data failing to dent sentiment (no more QE) nor provide a bullish uptick (growth on its way). More bad news from Spain regarding regional requests for aid added to European Central Bank (ECB) help hopes.

While many awaiting to hear what Bernanke has to say (Will he? Won’t he?), focus nonetheless divided between the Fed and ECB. While many now expect nothing new from Bernanke (see above) interest rising in ECB president Draghi’s now-announced absence at Jackson Hole and what is keeping him holed up in Frankfurt. Assumption is update/launch of much discussed bond intervention programme to hold down elevated sovereign borrowing costs at next week’s ECB meeting.

Draghi reiterated need to sometimes go beyond standard tools in order to accomplish mandate in times of difficulty, hitting out at criticism from Bundesbank (German central Bank, big influence in Europe) president Weidman who is against, seeing bond buying as illegal “state aid”. However, German Chancellor Merkel, previously against Germany paying for other’s mistakes has now signalled broad support (presumably still as long as the countries being helped stick to the fiscal pact rules).

In Commodities Gold pretty much unmoved (QE neither on nor off), traders in wait and see mode regarding what Bernanke says impacts the US dollar (in which commodities are denominated). The Oils ticked up a touch as hurricane Isaac made landfall, but missed major production units, although discussions about US releasing strategic petroleum reserves (SPR) keeping price in check. In FX, USD flat versus GBP, weaker vs. EUR (more chance of ECB intervention that Fed?).

In today’s macro line-up, watch out for Eurozone confidence indicators (Business, Consumer, Industrial, Services, Economic) with consensus expecting no change. A big change either way (better or worse) could impact market direction. In the afternoon, we’re back looking at the US and the number of US jobless claims, with both initial and continuing also seen at the same level flat as last week. After the upwardly revised 2^nd estimate for US GDP yesterday, watch out also for US Personal Income & Spending for further signs that consumer confidence may be improving.

As always, have a chat with your friendly trader for anything other information you require.

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

• JP                     Retail Trade                            Worse
• NZ                    Business Confidence               Improved
• Aussie              Private Capital Expenditure                Better
• Aussie              Building Approvals                              Worse
• See Live Macro calendar for all details

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

• Insurer Admiral’s profit rises on UK strength
• Perform H1 adjusted profit up 84 pct
• Salamander Energy profit falls on lower production
• WPP signals slight slowdown in July
• Russia’s Polymetal H1 2012 net profit falls 2 pct
• Russia’s Polyus Gold H1 2012 net profit more than doubled
• Kentz says can deliver double-digit earnings growth
• Hunting H1 profit soars, confident on FY
• Evraz swings to H1 net loss on weak steel prices, sales
• Struggling JJB Sports puts itself up for sale
• FirstGroup: Preparing for Successful Start of West Coast Franchise
• Vectura says lung drug QVA149 meets goals
• Cape on track to meet recently revised expectations for the year
• Hays posts profit rise on overseas growth
• Melrose Trims 1H Pre-tax Profit as Revenue Climbs; Order Books Strong
• Barclays Appoints Antony Jenkins As Group Chief Executive