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

UK Index called to open +5 at 6725pts following another day of losses on the equity market.

The UK Index was led lower by the insurers following an update from both Aviva (AV..L) and Admiral Group (ADM.L) who both disappointed the markets. Aviva announced new turnaround plans which did not meet market expectations and was down by 3.6%, whilst Admiral updated that they would be lowering premiums and subsequently fell by over 6% at once point. Keep an eye out on our “Reporting Tomorrow” publication so you are aware of when major companies are updating the markets.

The best performer on the UK Index was EasyJet (EZJ.L) up over 3%, which was not a huge surprise with bargain hunter jumping aboard having seen the reaction following AirFrance-KLM results as overdone. Randgold Resources (RRS.L) was up again to close at its highest levels this year, having surged 35% YTD as traders seek gold related stocks which act as a safe haven.

The US markets were quiet and placid for the early parts of the trading session, with all eyes waiting for the Fed minutes. Following the release of the minutes, the DOW jumped over 50pts to test 17000 again, as traders reacted to growing optimism that there would be a rebound in Q2 activity and that the bond buyback programme could end as early as October.

Asian markets had a mixed day with equity markets outside Japan gaining as China’s trade data expanded. The Hang Seng added 0.3% and the ASX rebounded by 0.4% helped by commodity related shares. The Nikkei bucked the trend and fell 0.3 percent, weighed down by a record drop in machinery orders in May that cast doubt over the outlook for capital spending and the strength of its economic recovery.

In commodities, gold continued to trade near week-highs at $1330, still within its range, as the dollar weakened following the minutes. WTI fell to $101.70 a barrel, which now means after a record 10^th day of losses, this is the longest losing streak on records, as data showed stockpiles expanded. Next step for WTI could be $100 a barrel. Crude remained steady to finish at $108.20 a barrel.

In focus today keep an eye on companies reporting today. We have Burberry (BRBY.L) who announced that profits could be lower-than-expected, AB Food (ABF.L) have raised guidance and house builders Barratt Developments (BDEV.L) sees year profit at top end of forecast. For macro-data we have BoE rate announcement released at 12:00pm expected to remain unchanged and US Jobless claims at 13:30pm.

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

• JP           PPI                                         BETTER
• AU          Unemployment Rate     WORSE
• CH           Trade Balance                   WORSE
• JP            Consumer Confidence   BETTER

See Live Macro calendar for full details

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

• Supergroup FY pretax profit drops to 45.2 mln stg
• Panmure Gordon sees pretax profit of 1.8 mln stg
• Halfords Q1 rev up 7.9 pct
• Burberry warns foreign exchange rates to impact profits
• AB Foods raises year earnings guidance
• SSP prices London listing at bottom end of range
• Polar Capital breaks inflow winning streak in June quarter
• Imagination Tech chairman Geoff Shingles to retire
• Mothercare's interim CEO named permanent boss
• Premier Oil says H1 total revenue to be in order of $880 mln
• UK's North Morecambe gas terminal back on line –Centrica
• Hays reiterates full-year outlook on strong local growth
• House builder Barratt sees year profit at top end of forecasts