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

The UK 100 is set to open up 16pts at 6531pts after the Dow Jones managed to overturn a 150pt intraday decline to finish in the red by a more palatable 26pts. One of the main drivers for the move south was a decline in US manufacturing as reported by Markit Economics. The preliminary index decreased to 55.5 in March from 57.1 a month earlier – a reading above 50 indicates expansion.

The initial knee-jerk reaction was understandable given just hours earlier Chinese manufacturing data had too disappointed. Reassuringly buyers returned as the Dow Jones fell, focussing on the positives – the reading was the second-highest since January 2013 and confirmed expansion.

Elsewhere in US markets the S&P 500 closed down -9.08pts at 1,857.44pts and NASDAQ closed at 4,226.39pts down 50.5pts.

Keep an eye on proceedings at 09:30 and 14:00 for further economic updates from the UK and US respectively. For the UK we will receive the latest Consumer Price Index (CPI) data and from the US, the latest Consumer Confidence and New Home Sales figures.

Asian markets were reasonably placid, shallow losses of less than 0.5% registered across the Nikkei, Hang Seng and ASX 200. This amounts to profit taking after the prior day’s rally.

Results today: Wolseley (WOS.L) H1 Revenue £6.25bn, H1 pretax profit £316m, H1 dividend 27.5p, “still facing headwinds in continental Europe”  Kingfisher (KGF.L) FY Profit before tax £759m up 4.1%, Revenue £11.13bn (£11.18bn expected), Final dividend 6.78p (6.9p expected) will return £200m to shareholders this year, sees a pickup in consumer spending, “looking for a strategic partner in China”. A.G. Barr (BAG.L) Profit increased by 9.6% to £38.1m, revenue rose 6.9% to £254.1m, total dividend up 10% to 11.02p p/share.

In focus today: DE IFO Current assessment/business climate/expectations at 9:00. UK BBA Mortgage approvals, CPI PPI RPI at 9:30, US House price index at 13:00, US Consumer confidence at 14:00, US New home sales, EU Mario Draghi speaking, US FED Lockhart speaking at 20:00, US Philadelphia FED’s Plosser speaking at 23:00.

Commodities: Copper rose 0.3% to $6,485.25 tn following speculation that China will take measures to bolster growth and supply concerns from a mine in Chile. Gold rose 0.6% to $1,316.86 oz because of concerns over Russia invading other parts of Ukraine boosting demand for the safe haven. WTI crude drops 34cents to $99.26 a barrel while Brent crude slipped 13cents to $106.68 a barrel amid speculation stockpiles rose for a 10^th week in the US.

FX: Euro slipped 0.1% to $1,3831 against the dollar but rose 0.3% against the Yen to 141.49 ahead of German IFO reports due late this morning. Indian rupee rose to a 7-month high against the dollar of 60.4775 as foreign investment increases amid speculation the forthcoming election of a new government will hasten the nation’s economic recovery.

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

• CHINA              Feb Leading Economic Index              IN-LINE
• JAPAN              Small Business Confidence                 IN-LINE

See Live Macro calendar for all details

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

• Flybe, Stobart sign 5-year deal for flights from London Southend airport
• Budget carrier easyJet upgrades first-half outlook
• Nanoco posts bigger pre-tax loss
• Centrica to buy Bord Gais retail arm for 1.1. billion euros
• Kingfisher to return capital as profits rise
• Troubled RSA launches 773 million pound rights issue
• Sinclair IS Pharma gets global rights to Ellanse
• Newly-privatised Royal Mail announces 1,300 jobs cut
• A.G Barr posts 9.6 pct rise in profit
• Aviva to sell Turkish unit to EMF Capital Partners, unit says
• Topps Tiles upbeat as firm sees jump in first half profit
• Investment bank Panmure Gordon profit nearly doubles
• 888 lifts payout with one-off dividend
• UNITE says 94 percent of investors back open offer
• Wolseley profit lifted by strong trading in U.S., UK and Nordics