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

UK 100 Index called to open -30pts at 6870, having fallen back below 6900 following the test of recent highs 6905 and posting of fresh 15yr highs 6921. Note support overnight around 6880, but potential for correction to continue down to rising Feb lows around 6840 before resumption of the overall uptrend and another attempt at all-time highs of 6950. Updated Watch levels Bullish 6930, Bearish 6810.

The negative open comes despite a stellar round of UK jobs data and confirmation that Greece is to request an extension (widely thought to happen this morning) of its loan programme for up to six months which will give the country extra time to negotiate bailout terms with the Eurogroup. The ECB also extended and increased the Emergency Liquidity Assistance program for Greek banks, boosting the cash allotment to €68.3B. The cash-strapped nation has been given a little breathing space but known stubbornness on both sides of the bailout renegotiation talks is keeping uncertainty very much alive, not to mention the worsening situation in Ukraine.

US bourses closed mixed last night after surprisingly dovish FOMC minutes indicating that "many participants" feel a premature US rate hike would be a risk to a sustained recovery. The idea of dropping the ‘patient’ terminology was itself dropped, with the Fed preferring to remain ‘patient’ for the time being. US stocks inched lower after an initially positive reaction to the news. The minutes also noted that a strong USD was expected to be a persistent headwind for US exports, while several members advanced concerns if weaker core US inflation continues.

In Asia markets were also varied following the FOMC minutes and perceived Eurozone uncertainty which turned many investors into observers. Volumes generally thin due to the closure of several markets – most notably China – for Lunar New Year holidays. In Australia, markets retreated as initial gains were weighed down by energy stocks on falling oil prices (API data showed increased US stockpiles) while in Japan the Nikkei 225 traded 0.4% higher (its highest in 15 years) after better than expected trade data showed impressively buoyant exports and a larger than expected fall in imports as the weak yen continues to pay off.

In focus in the Eurozone this morning we have French CPI data (out as we publish) which is expected to show a fairly startling slowdown in the EU’s 2^nd largest economy. In the UK the CBI trends survey is forecast to show increasing orders and falling sales prices for manufacturers, while later in the afternoon the US Philadelphia Fed will be offering its Business outlook for February. Rounding off the day will be the now familiar EIA US Oil Inventories report - another one to peruse for the impact on Oil’s still tenuous recovery.

While on the subject, Oil continued to fall back from recent highs (Brent and WTI at $59.5 and $50.5 respectively) after American Petroleum Institute (API) data showed US Oil inventories jumping by another 14.3m barrels last week, way above 3m consensus and heightening fears of another big build in EIA US Crude Inventories this afternoon (16:00; consensus +3m barrels vs +4.9m prev) which would only go to fuel fears of a global supply glut as OPEC maintains output and put pressure on the recent oil price recovery. A weaker USD following FOMC minutes and geopolitical worries on Libya/Ukraine failed to support.

Gold ($1215) has bounced off 3-month rising lows $1200 thanks to surprisingly dovish/cautious FOMC minutes which saw the USD Index weaken to recent lows of 94 (making the metal cheaper) on the prospect of US interest rates staying lower through mid-2015. This offset growing optimism (and thus lower safe haven demand) in a Greek loan extension request (this morning?) to give the troubled nation more time to negotiate bailout terms as well as lower fundamental demand due to Asian holidays. Off its lows, but still in a downtrend from Jan highs $1307.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.

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

• Japan                    All Industry Activity index                             Deteriorated
• Japan                    Leading Index                                                   Improved     
• Japan                    Coincident Index                                              Stable

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

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

• UK's Rathbone profit helped by Deutsche Bank, Jupiter deals
• SAB Miller CFO Wilson quits for personal reasons
• Caza Oil & Gas announces $4B convertible loan
• BAE Systems 2014 earnings in line, sees marginal growth this year
• Centrica full – year profit falls to 927 million pounds
• Rexam says gets £4.43B stg offer from U.S. rival Ball Corp
• Rathbone says FY funds under management rises 23.6%
• Sports Direct sales growth slowed by weak demand in Austria
• Majestic Wine says CEO Steve Lewis to step down with immediate effect
• Petra Diamonds raises FY production guidance to about 3.3 mcts