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

UK 100 called to open flat at 6912 this morning, back from the highs having failed to garner support at 6920 (look for potential resistance now) and with prior all-time highs 6950 fading back into the shadows. The index remains in 2.5-month uptrend and above the 1-year resistance level 6900. Watch levels: Bullish 6960, Bearish 6880.

The flat open comes as Europe and indeed the world await the outcome of the Eurogroup’s hopefully positive assessment of Greece’s list of reforms that were submitted overnight. Will the proposals see Varoufakis’ ‘small step’ become a ‘giant leap’? We note that IMF chief Lagarde has stated that a Greek exit is not being discussed. Elsewhere, UK PM Cameron spoke out against Russian-backed actions in Ukraine, indicating tougher sanctions on Russia in response to its ongoing support for the rebels there.

US markets were strained following mixed news with equities suffering from low oil prices and disappointing home sales data, while positive sentiment regarding Greece and an apparently ‘uncomfortable’ OPEC, said by the Nigerian oil minister (and OPEC president) to be considering an emergency meeting if crude continues to slide (which OPEC itself denies…confusing?), provide support. Closer to home, voting FOMC member Lacker stated yesterday that the Fed can raise rates in April or June and that we shouldn’t be so hung up on whether or not they are using the word ‘patient’ as an indicator. All eyes on Yellen’s testimony today, then.

In Asia markets were mostly higher again but with gains muted as investors await the US Fed chair Yellen’s speech to the House of the Senate. Many markets remain closed in the region (China, most notably) for Lunar New Year, while in Japan the Nikkei closed in positive territory benefitting from the weak Yen after opening in the red, with losses attributed to profit taking following recent strong gains. Australia’s ASX closed up 0.1%.

In focus today will be the fallout from the Greek negotiations and an in-line with expectations German GDP; Eurozone inflation showing a forecast contraction – hardly surprising given the ongoing uncertainties (but we may get some good news on Greece). In the US, house prices growing more slowly and consumer confidence coming in lower than last month will help decide whether jittery hawks or patient doves will be circling above the economy as we move into the next.

Oil still under pressure due to continued global supply glut concerns and a stronger USD, with US Light Crude ($49) having broken below its trend-line of rising support since 6 Feb and Brent ($58.6) testing its own rising lows. Note the spike late yesterday when OPEC’s President told the FT there could (later denied) be an emergency meeting in six weeks or so if ‘prices slip any further’, given the discomfort of non-Arab oil producing nations.

Gold back down at $1200, after tests of both $1190 and $1210 yesterday. Still testing support from 4.5 month trend-line of rising lows, but also remaining very much in a tight down channel from 22 Jan. Strong USD a hindrance, along with China’s holiday absence and optimism regarding the Greek outcome despite multiple other geopolitical worries. Keep an eye on the Fed Chair’s testimony which could alter rate rise expectations and move both the USD and safe-haven metal.

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

• Elementis says FY pretax profit rises to $141.9 mln
• UK challenger bank Aldermore to raise 75 mln stg in March IPO
• Balfour Beatty agrees re – profiling of 85 mln stg pension deficit payment
• House-builder Persimmon posts 44 pct rise in full-year profit
• Croda International sees subdued demand from Europe
• Specialty chemicals maker Croda's full – year profit hurt by strong pound
• Mondi says FY underlying operating profit rises 10 pct
• BHP Billiton profit slides on commodities slump, pledges more spending cuts
• Lonmin says Ben Moolman named acting COO
• Bowleven says Etinde farm-out deal to complete in 15 days
• GKN sees more growth this year after 2014 profits rise
• Green Dragon Gas says rise in estimated reserves as at Dec. 31
• Provident Financial adjusted pretax profit rises 19.5 pct
• Just Retirement H1 underlying operating profit falls 10 pct
• Meggitt wins multi-million-dollar contract from AVIC Aircraft
• Meggitt 2014 profit falls 13 pct, on track for 2015
• Ashmore Group's H1 pretax profits rise to 110.7 mln stg
• Czech Miner NWR swings to Q4 profit after capital restructuring
• Drax pre-tax profits rise on stronger power sales
• Aer Lingus posts 2014 profit rise as IAG takeover falters
• BHP's iron ore outlook holds little cheer for small miners
• NMC Health posts 12 percent rise in annual net profit