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

  UK 100 called to open -15pts at 6380, still under downward pressure from the last few weeks, and while 6420 was the hurdle of yesterday, 6400 was not even flirted with overnight – falling 3-week trendline of support-turned-resistance still very much intact.

 Asian bourses mixed, with Japan and Hong Kong negative and Australia in the green (holiday catch-up) after a similarly mixed handover from the US, with the DJIA and S&P500 just negative but the tech index Nasdaq in the green (Apple iOS7 unveiling).

 US sentiment helped by S&P affirming the US AA+ rating and upgrading its outlook to stable from negative and Moody’s saying it will make a move (up or cut) by year end.

 Overnight the BoJ left policy unchanged, but disappointed by leaving funding terms unchanged and not expanding purchases as had been anticipated to calm bond markets.  A former minister also said PM Abe’s third strategy arrow missed the mark and a 2% inflation target was but a dream. Comments from Governor Kuroda keenly watched this morning.

 Overnight macro data showed the BoJ leaving rates unchanged, a money stock still growing and the Manpower employment survey improving. UK house Price rises accelerated (3yr high), the Chinese Manpower reading added to the weekend’s disappointing data, while Aussie home loans slowed but negative business confidence and conditions improved.

 In focus today will be the UK’s update on Industrial and Manufacturing Production, seen flattish in April, but annual weakness improving, while the NIESR UK GDP estimate has a strong 0.8% to beat from last month. US Small Business Optimism expected to fall back a touch, as are US Wholesale Sales & Inventories. With employment data so key, US Job openings seen flat in April.

 Today also sees the German Constitutional Court (Karlsruhe) set to discusses whether the ECB overstepped the mark with its ‘whatever it takes’ and yet-to-be-used but market-calming OMT plan (sovereign bond market intervention), although no ruling expected for a few months and note ECB President Draghi’s comments yesterday that interest rates will rise on improved confidence but he will not intervene in sovereign bond markets to ensure solvency of a country.

 UK 100 never really regained momentum yesterday, moving sideways around 6400. Overnight, has seen a fall back to 6380 which leaves multi-week downtrend on QE3 uncertainty intact. Downside potential to last week’s lows of 6280, upside hurdle around 6420-40.

 In FX, GBP/USD back up testing last-week’s high of 1.56 as the USD weakens on the prospect of QE3 being here to stay a little longer. Note that bar a spike last week, this level is resistance of early May. EUR/USD, testing 1.33 spike highs of last week. USD/JPY rebound lost momentum on BoJ disappointment. Pullback from 99 to 98.

 Gold hindered trading sideways around $1380 since US Labour report and despite USD weakening. Potential support around this level, but note resistance zone $1400-1420 after trading of late-May/early-June.

 The Oils have pulled back from highs of $96.5 (US light Crude) and $104.5 (Brent Crude) despite USD weakening and more likely on US upgrade of estimates of global shale oil/gas reserves as well as macro data generating uncertainty over global growth.

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

• Japan               Interest Rate                           Unchanged
• UK                    RICS House Prices                   Better
• Japan               Money Stock                           Mixed
• Japan               Manpower Survey                   Improved
• Aussie              Home Loans                            Deteriorated
• Aussie              NAB Business Conditions        Improved
• Aussie              NAB Business Confidence       Flat
• Japan               Machine Tool Orders              Improved        

See Live Macro calendar for all details

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

• Oxford Instruments profit rises
• Chariot Oil says granted extension to Morocco licences
• Keller raises 59 mln stg for North American Piling deal
• North American Energy Partners to sell piling business to Keller Group
• Wood Group wins $200 mln North Sea contract
• Gulf Keystone appoints firm to handle chairman search
• UK to allow Britvic and A.G. Barr merger for drinks supergroup
• Amec awarded BP environmental contract
• Imagination Technologies signs licensing deal with Toshiba
• Galliford Try re-appointed to Environment Agency deal
• Rio Tinto to start shipping Oyu Tolgoi copper on June 14