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

UK 100 called to open +20pts at 6720, having found support around 6700 after the index fell back sharply to test end-Jan lows, taking the recent correction to almost 300pts from all-time highs. While the bulls will look to this level for support to keep the index in a sideways trend the bears will hope it is merely a pause before another leg down. Watch levels: Bullish 6760, Bearish 6675.

The positive opening call comes despite US markets closing lower and Asia under pressure on mixed US macro readings, the strong USD (12yr high), falling oil prices and disappointing overnight prints from China confirming slowing growth. While China Feb Investment, Industrial Production (weakest Jan-Feb in 6yrs) and Retail Sales missed expectations they will nonetheless likely just add to hopes of more stimulus after Beijing last week cut its 2015 GDP forecast to just 7% (slowest in 15 yrs). As US rate hike fears intensify, one eye on FOMC meeting next week and whether the term ‘patience’ is kept or not?

US markets closed lower Tuesday, weighed down by falling oil prices and a surging US dollar with investors eyeing both events in the Eurozone and the FOMC meeting next week, expecting the clearest signal yet of an imminent US rate rise (this despite inflation remaining stubbornly below target levels). The USD continues to be a headwind for US economic growth having taken off yesterday and remaining strong this morning.

Asian bourses followed US markets lower with the exception of the Japanese Nikkei, outperforming and up by 0.7% this morning on  a weaker yen and depressing economic data that investors seem confident will encourage Abe’s government to apply some stimulus measures in the near future. Chinese data came out below expectations with industrial production last month coming in at the slowest pace in almost six years and fuelling fears of a slowdown. The government indicated it will go ahead with economic reforms to rebalance the world’s #2 economy, even if it has to accept a slower pace of growth.

In Australia, RBA Assistant Governor Kent said monetary policy will help the economy and low rates are spurring activity in the housing market while adding that the Australian dollar remains relatively high given the state of economy.

In focus today will be German labour costs and UK industrial and manufacturing production which is expected to improve. The US EIA weekly oil stocks come in this afternoon, while event-wise we’ll be hearing Mario Draghi at 0800, a bill of ECB speakers, the BoE’s Weale and the results of the second round of US bank stress tests.

US Light crude ($48.8) and Brent ($56.6) still under pressure via strong USD, although the former found a bit of support around end-Feb lows of $48 after API inventory data showed a drop in US stockpiles (first time in 2 months) which boosted hopes that today’s EIA data could deliver a similar message offsetting global supply glut fears as output exceeds demand. Potential support for Brent at 50-day moving average.

Gold bumbling around $1160 having fallen back as far as $1150 as EUR weakness from ECB QE and a USD strength (EUR/USD ever closer to parity) ahead of a US rate rise and absence of any meaningful inflation undermines the yellow metal and hinders any advances on Greek financing or geopolitical fears. Still potential for November lows of $1130 to be revisited as the strong USD dents safehaven demand and keeps bullion in a falling channel.

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

• Aussie                    Consumer Confidence                   Weakened
• Japan                      Machine Orders                               Beat, not as weak
• Aussie                    Home Loans                                       Miss, growth plunged
• China                      Industrial Production                      Worse, growth slowed
• China                      Retail Sales                                         Worse, growth slowed

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

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

• Optare appoints Hariharan Krishnamurthi as CFO
• Hume Cap Sec PLC Suspended from AIM
• APR Energy expands Turnkey power plant in Myanmar
• Bayer aims to boost drugs sales, margins over next 3 years
• Estate agent Foxtons posts 8 pct rise in full – year profit
• Staffing firm Michael Page reports 17 pct rise in FY profit
• Firstgroup names Wolfhart Hauser as new chairman
• Hikma profit jumps on strong injectible drug sales
• Domino Printing says Japan's Brother Industries makes 1 bln stg offer for co
• Ukraine's Ferrexpo posts 2 percent fall in core earnings
• Galliford Try reaches close on 186 mln stg in education contracts
• Boohoo maintains guidance and says will buy back shares
• Plus – size retailer N Brown warns on full – year profit