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

UK Index called to open flat to slightly lower this morning, with risk sentiment subdued after economic reports from the US and Australia raised concerns that global growth is slowing.  Asian stocks have fallen for the 5^th consecutive day, the longest losing streak in eight weeks.  Disappointing  US Data (see below)  showed a contraction for the third consecutive month, and  construction spending posted the largest drop in a year ( -0.9% vs +0.4% expected).  Australia’s economy slowed in Q2 (0.6% vs 1.4% – Q1), on weaker housing and rising imports.  The Down-Under resource led boom of previous years, may be coming under strain with China easing its demand.

Further meetings are scheduled amongst Euro-leaders ahead of tomorrow’s ECB meeting, with the Troika (IMF/ECB/EC) visiting Athens to monitor the progress of the Greek government.  Further budget cuts are expected, but a leaked email shows pressure to accept a proposal for a six-day working week and longer hours for private sector works – which may instigate further protests and unrest.

In Commodities, Gold is consolidating around the $1,693 level. In Oil, US Light Crude trading around $95.5 a barrell. In FX markets, the USD had a strong bounce against the pound and euro after disappointing manufacturing data. ISM manufacturing data came in at 49.6% which was a slip for the third consecutive month (gauges condition of US manufacturing activity. It is considered to be the most important of all manufacturing indices. Liable to move markets, especially when periods of rapid economic growth approaching end of their cycle). This figure was 1) the lowest reading in over three years and below the 50.2% level analysts were expecting (anything below 50% indicates contraction). GBP vs USD currently trading at 1.585 whilst EUR vs USD is at 1.252.  We recently had Aussie GDP figures which were weaker than expected, coming in at 0.6%. This pushed AUD vs USD to a six week low of around 1.020.

In today’s macro line-up, watch out for PMI and CPI data from Spain, Switzerland, Italy, France, Germany, UK and the Eurozone. Will figures released here disappoint or will there be something to shout about. Figures start coming out from 08:15 but check our Live Macro Calendar for a full breakdown

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

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

• NZ                    Terms of Trade Index             WORSE
• UK                    Lloyds Business barometer     IN-LINE
• AUSSIE             PMI                                          IN-LINE
• JAPAN              Capital Spending                     WORSE
• AUSSIE             TD Securities Inflation                        IN-LINE
• CHINA              Manufacturing PMI                IN-LINE
• AUSSIE             Retail Sales                             WORSE
• AUSSIE             Inventories                              BETTER

See Live Macro calendar for all details

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

• Shanta Gold says encouraged by JV exploration results
• Hargreaves Lansdown co-founder to step down from board
• Hargreaves Lansdown to pay special dividend
• Berkeley Group says Q1 trading in line with expectations
• Namakwa Diamonds names Craig Campbell as CFO
• 32Red says July and August 2012 revenues up 22 pct
• Lansdowne Oil & Gas – Barryroe Oil Resource Update
• Airbus fights exclusion from U.S. aerospace lobby

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• Various                 EU                          PMI Services (08:13-09:28)
• 09:30                     UK                          Official Reserves (Changes)
• 10:00                     EU                          Retail Sales
• 12:00                     US                          Mortgage Applications
• 13:30                     US                          Nonfarm Productivity

 See Live Macro calendar for all details, incl. consensus expectations