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

UK 100 Index called to open -40pts at 5995 with the index slipping back from another foray above 6000 with the 3-month downtrend dominating so long as we are without a more meaningful breakout and the 6000 level serves as support for any pullback. Note yesterday’s highs just shy of the 100-day moving average. Watch levels at: Bullish 6030, Bearish 5980.

The negative opening call comes after a weak Asian session which is at odds with a strong US close (+1.5%). The global risk rally continued to lose momentum overnight after another pullback by oil (still a major market driver) and industrial commodities while the Chinese weakened the Yuan to its lowest in 6 weeks and the Japanese Yen (JPY) and Gold rose on renewed safehaven seeking. As momentum wanes, do we need more soothing rhetoric from our dear central banks? What’s the next driver?

Chinese stocks down, led by financials and industrials after the People's Bank of China (PBOC) central bank weakened its yuan currency in a continued effort to maintain competitiveness and counter economic indicators signalling a deepening slowdown. Japan’s Nikkei has erased early gains on account of a stronger JPY which makes life harder for exporters.

Aussie ASX in the red after commodities like Copper, Nickel and Iron Ore topped out on technical reasons and mining major BHP Billiton (BLT) joined peer Rio Tinto (RIO) in abandoning its progressive dividend policy for the first time in 15 years, slashing its interim dividend by 75% to protect its balance sheet amid a commodities depression resulting in its first net loss in 16 years.

US markets closed green on Monday amid firming oil prices as OPEC continued to talk production freezes. However, the positive mood has diminished somewhat overnight with crude retreating a little from its highs and the Dollar strengthening on Asian currency weakness, after the PBOC fixed the Yuan to its weakest level in 6 weeks against the US currency.

In focus this morning will be German IFO surveys seen giving up a little ground in February. Thereafter, aside a couple of central bank decisions (Turkey, Russia) we have US House Price data and the Richmond Fed Manufacturing Index expected flat and US Consumer Confidence down a touch, although US existing home Sales may have accelerated. Speakers include BoE Governor Carney and his band of merry men as well as the Swiss National Bank’s Jordan, the Fed’s Fischer and both the Kashkari.

Brent and WTI are struggling to make headway above December falling highs, yet remain supported by shorter-term rising lows. Clearly the persistence of production cut/freeze chatter is helping, but note that freezing production at record high levels (which hasn’t happened yet) won’t solve the immediate oversupply problem. And cuts looks even further away.

Gold is in a 13 day narrowing (holding?) pattern as equity markets hover around resistance levels. No clear indications of where risk sentiment is at the moment, but plenty of uncertainty - Middle East, Brexit, US Fed - to stir things up in the short to medium term.

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

• Meggitt FY profit lower, sees sales rising in 2016

• GKN 2015 profit flat, sees growth this year

• Hotelier IHG posts higher FY profit, to return $1.5bn
• InterContinental Hotels Raises Dividend as 2015 Profit Rises
• Persimmon 2015 Pretax Profit +34%; Says Positioned for Further Growth in 2016
• GKN Aerospace Reports 16.6% Rise in 2015 Net Profit
• Provident Financial Reports Rise in 2015 Earnings
• Oxford Biomedica Placing to raise 8.1m
• Drax 2015 Net Profit Slumps; Challenging Year Ahead
• John Wood Group Earnings Fall 75%; Backs 2016 Dividend Target
• Acacia Mining Hedges 15% to 20% of Planned Gold Output in 2016, 2017
• Croda to Return £136m Via Special Dividend, 2015 Earnings Rise
• Ladbrokes 2015 Profit Falls on Cost and Charges
•  Unite Group Posts Threefold Rise in 2015 Pretax Profit; Sees Similar 2016