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

UK 100 called to open -4pts at 6840, remaining in an upwards channel but hovering just below key resistance around 6860 since yesterday as markets await  the outcome of the US Fed’s meeting today. A break above 6902 would please the bulls while bears will eye a fall off towards 6786 support.

The negative open comes as investors await the US Fed decision on a 2015 interest rate rise, with expectations that Yellen will indeed announce such a thing later today. Sceptics, however, cite many reasons not to raise rates – lacklustre wage rises, impact of resultant dollar strength (already priced in?) on US exports, inflation target somewhat elusive.

The US Fed's 2-day meeting continues today with Janet Yellen due to speak at 18:30. US stocks closed mostly lower overnight with investors reluctant to take significant positions ahead of the announcement. The UK Index was held just above water by energy stocks on expectations that George Osborne will offer tax breaks to such firms in today’s budget speech. More bad-mouthing in the Eurozone as BoE FPC member Brazier said that Greece will never be able to get rid of its enormous debt mountain, since the political pain that its leaders would suffer would make it impossible. Sticks & stones…

Asian bourses are mostly higher this morning with the Nikkei still surging upwards on not bad economic data, albeit on slightly lower momentum. Australia’s ASX closed flat as weak Chinese data continues to compound the China Slowdown story. When will the government react as promised?

In focus today will be UK jobs data at 0930, EIA weekly oil stocks, George Osbourne eager to amass votes with his Budget Speech and, of course, Yellen at 18:30.

US Light Crude ($42) is trading flat around 6-year lows ahead of the EIA weekly oil stocks data due out today which may signal a tenth straight increase in stockpiles (same old, different day). API data released Tuesday certainly supported the aforementioned with storage at Cushing, Oklahoma bulging at the waistline. Brent ($55), meanwhile, is also largely unchanged and appears to be taking a break from its slide for similar reasons. Will we see a convergence in the prices of WTI and the UK benchmark?

Gold ($1147) continues its slow and tenuous recovery off 4-month lows as investors eye the US Fed outcome. The yellow metal, a non-interest yielding asset, has dropped nearly 3 percent this year on expectations of a US rate hike as the dollar goes from strength to strength on speculation that the Fed is becoming impatient. A strong USD is bad news for dollar denominated commodities, especially safe haven asset Gold.

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

• Japan                    Trade Balance                    Beat, Improved
• Japan                    Imports                                Missed, Improved
• Japan                    Exports                                 Beat, Improved

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

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

• Ofgem secures penalty payment of 100,000 stg from SSE
• IMI names Robert Smith as new chairman
• BG Group pumps first oil from Norway's Knarr field
• Smiths Group profit slips, names interim CFO
• Asia Resource reaches restrucuting deal for senior secured notes due 2015
• British Land to invest 50 mln stg in Meadowhall refurbishment
• Hochschild Mining's core profit falls on lower metal prices
• UTV Media posts FY pretax profit of 17.2 mln stg
• Imagination Tech sees licensing at about last year's level