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

  UK 100 called to open +12pts at 6788 following a wild trading session yesterday that saw early gains wiped out with concerns in Russia and ahead of the FOMC statement.

Despite early gains the UK Index ended lower by 35pts. As mentioned yesterday companies reporting played a big part in both the best and worst performers. Top of the pile was Barclays (BARC.L) +4.2% following a trading statement that beat analyst expectations despite coming in lower than last year. Runner up was Travis Perkins (TPK.L) +2.7% as they announced profits were 19.4% higher despite a drag on currency.

Winner of the wooden spoon was miner Antofagasta (ANTO.L) following a production update that disappointed many with their outlook. Runner up in this category was GKN (GKN.L) as traders took profits from gains made on Wednesday.

In the spotlight today we have many UK Index heavyweights reporting. Lloyds Bank (LLOY.L) have announced that despite fines for both LIBOR and PPI, profits increased by 32%. So far from UK banks we have seen RBS +15% and Barclays at one point +5.2% following updates. How will Lloyds fair today? Other giants that reported include AstraZeneca, Centrica, Rolls Royce, BT Group and BG Group. For more on these please call in.

US markets were mixed with the DOW starting the day positive by 40pts as US GDP figures beat expectations but following the open on rumours of more military action from Russia and ahead of the FOMC comments, traders took risk off the table in spectacular fashion that saw the DOW see triple digit losses. Following details that the Fed would continue to taper and no real indications of what next the Dow recovered to finish lower by 30pts at 16,880.

In Focus: Look out for the reaction to Nationwide House Price data released from the UK this morning which missed forecasts (YoY 10.6% vs. 11.3% expected and 0.1% vs. 0.5% expected). At 8:55 Unemployment change from Germany (Keep your eyes on the Euro and DAX) at 10:00 Consumer Price Index being released from the EU. At 13:30 Initial Jobless Claims and Continuing Claims from the US. Finally be aware that both Chinese NBS Manufacturing PMI and HSBC Manufacturing PMI are being released at 2:00am tonight.

Commodities: Gold fell 0.20% to $1,294.24 continuing its fourth day of declines as further signs the US recover is gaining momentum has strengthened the case for higher borrowing costs. Iron Ore rose 0.6% to $95.90 a dry ton and is heading for its biggest monthly increase so far this year on speculation of increased demand from China. Aluminium rose 2% yesterday to $2,022 a metric ton again on speculation of increased demand from China and also the US. WTI fell 1.1% to $99.16 a barrel as gasoline stockpiles rose and demand declined in the US. Brent fell 0.6% to $105.88

FX: Dollar is unchanged against the Euro at $1.3397 having increased 2.2% in July. Against the Yen its 102.73 holding on to its longest gains since 2005 after US GDP data.

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

• AU          Building Approvals                           WORSE
• AU          Import Price Index                          WORSE
• AU          Export Price Index                           WORSE
• JP            Housing Starts                                   BETTER

See Live Macro Calendar for full data line-up, incl. consensus expectations

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

• Legoland demand helps boost Merlin first – half earnings
• Rolls-Royce says on track for full-year
• UK engineer Bodycote's first – half profit rises on buoyant demand
• Balfour Beatty ends merger talks with Carillion
• RTL Group buys stake in digital video ad platform SpotXchange
• UK bank TSB debut profits fall as costs jump
• Thomas Cook says recovery plan on track as earnings rise
• Lloyds Bank shrugs off Libor fines with profit increase
• Centrica first-half profits fall 35 pct
• AstraZeneca smashes forecasts in Q2 after seeing off Pfizer
• Schroders assets under management rise to record high in H1
• Inchcape to buy back 100 million pounds in shares
• BAE first half profit falls 7 percent
• Shell quarterly adjusted earnings rise 33 pct
• Oil explorer Afren suspends CEO, COO pending investigation
• Kazakhmys H1 copper output falls, focus on margins
• BG Group operating profit up 11 pct on higher LNG volumes
• Diageo performance falls on emerging market weakness
• RPS Group H1 pretax profit 21.7 mln pounds