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

The UK 100 Index is called to open higher by 3pts at 6811, after escalating geopolitical tensions caused 25pts to come off the value of the index yesterday.

Ukrainian President Poroshenko, yesterday said a Russian military invasion has taken place in Ukraine whilst Sky News reported 20,000 Russian troops have gathered close to the border in a situation that seems to be growing.

The price of gold jumped to $1291 as investors sought safe haven assets, which in turn pushed Randgold Resources (RRS.L) and Fresnillo (FRES.L) toward the top of the equity table. Shares increased 1.30% each

CRH (CRH.L) topped the UK 100 Index advancing 2% after analysts at Credit Suisse upgraded the stock to 'outperform'.

Defensive stocks also proved attractive with BT Group (BT.A.L), National Grid (NG..L), AstraZeneca (AZN.L) and Severn Trent (SVT.L) among the 33 rising stocks, up as much as 1%.

WM Morrison (MRW.L) added another 1.36% following Kantar's latest report on the supermarkets.

BREAKING NEWS - Tesco (TSCO.L) issues a profit warning and cuts its interim dividend by 75%.

The good run for commodity stocks came to an end yesterday. Rio Tinto (RIO.L) dropped 3.79%, closely followed by Anglo American (AAL.L), BHP Billiton (BLT.L) and Antofagasta (ANTO.L) - all down as much as 3.5% as traders took risk off the table and boycotted racier stocks in favour of those less sexy.

US markets recovered off their lows in pre-market to finish lower by 40pts with the S&P down 3.5pts at 1996 below the 2000 level as developing tensions in Ukraine remain at the top of the agenda. However as the afternoon session progress, US GDP data was revised higher at 4.2% which helped the index to pare early losses.

Asian markets followed suit from US peers and were broadly lower with both the Nikkei and Hang Seng both down by 0.2%. Japanese inflation data also came in worse than expected showing the economy was struggling to recover from recent tax hike.

In commodities, gold continues to tread water at $1290 on course to snap a two week decline as tensions escalate in Ukraine on reports of a Russian invasion. Silver also advanced to $19.78 set for first weekly gains in over a month. WTI trading at $94.90 a barrel is poised for its first weekly gain in more than a month as US GDP data came in better than expected. Brent rose slightly to $102.82. In FX as geopolitical tensions rise, the yen was on course for its first weekly advance in three weeks.

In focus we have Euro-Zone CPI released at 10.00am followed by a raft of US macro data in the afternoon with US Personal Consumption at 13:30pm along with Chicago Purchasing Manager at 14:45pm and U. of Michigan data at 14.55pm.

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

• NZ            Activity Outlook                                   INLINE
• NZ            Private Sector Credit      INLINE
• JP             Housing Starts                    WORSE
• JP             Construction Orders       INLINE

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

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

• Computacenter adjusted pretax profit rises 6.8%
• Afren H1 net production down 25%
• De La Rue names BAE Systems' Sutherland as CEO
• Tesco slashes dividend and profit forecast as trading slumps