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

UK 100 Index called to open +90pts at 5875 with the uptrend from 16 Jan lows having accelerated this morning with a break above resistance 5850. Short term RSI now overbought, however we could see some more upside to falling highs around 5900 or 5920 before a pullback. Be careful out there! Watch levels: Bullish 5920, Bearish 5700.

The positive opening call appears to be off the back of Chinese data that missed forecasts. While counterintuitive, it seems the markets actually saw what they were expecting instead of something worse. Some very dovish BoE commentary this morning could be helping the UK Index too, suggesting UK rates to stay low for a lot longer - a boon for equities that already largely had a good 2015.

Asian markets are mixed following that China data which showed the world’s 2nd largest economy grew by 6.9% in 2015 - just shy of the government’s target of 7% but largely in line with everyone else’s expectations - maybe even bettering them?

In focus today will be a raft of inflation data for European markets, starting with Germany at 0700 with the UK following at 0930, and the Eurozone at 1000 whose own MoM print is seen coming back from negative territory.

Gold is in a very shallow 2-day downtrend with investors clearly not as spooked by the  Chinese GDP data (that indicated a slowdown) as they might have been. Although everyone knows China's growth is slowing so this is likely already priced in. falling resistance since 8 Jan highs remains a hindrance for the yellow metal and, with risk appetite up this morning, is likely to continue to hold.

Oil prices are rising this morning with both WTI and Brent heading back to their $30 resistance levels. With no change in the news on the supply front, hold on for inventory reports this week. A still slowing china does not mean a big rise in demand!

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

• IG Group's H1 trading revenue up on volatile markets
• Prudential capital ratio beats forecasts, appoints new UK head
• Johnston Press explores sale of some assets
• Oil stabilises on strong China demand data, but looming Iran exports still weigh on market
• Unilever posts 4 percent rise in underlying full – year sales
• Total's CEO says does not expect to cut jobs
• Cairn Energy says H2 cash expenditure at $174 mln
• British Land Co says third quarter leasing, investment lettings up 8.5 pct
• fastjet appoints Mitchell as CFO
• Man Group appoints Richard Berliand as non – executive director