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

UK 100 called to open -35pts, despite EU and US markets closing pretty much unchanged, thanks to US investment banking giant JPMorgan announcing a surprise $2bn internal trading loss which it warned “could get worse”, and will have the pro-Volker rule camp rubbing their hands. Sentiment had been settled by comments from Europe that Greece will remain funded until recent elections are resolved (some form of coalition, watch this space) and that Spain, while looking to sort out its banking sector, is not looking to take more time to sort out its budget deficit, expecting markets to view EU leniency as evidence of creeping fiscal indiscipline.

Overnight, macro data also put a dampener on sentiment with UK nationwide consumer confidence missing expectations, and then a raft of Chinese figures which show a slowing in growth (inflation, retail sales, and industrial production). However, slowing Chinese growth in April, along with the weak trade data yesterday are likely to bolster the case for further monetary easing by Beijing, most likely via another cut in the RRR, which could boost appetite for risk. In addition, Indian industrial production posted a surprise decline in March, with markets having expected just slower growth from Feb. Again, the ‘emerging markets to the rescue’ plan is being ushered further towards the touchline.

Asian markets trading lower in to the weekend on account of investors being spooked by the announcement from JPMorgan (could peers report similar in Q2 after recent market volatility?) and the weak Chinese inflation data, which overshadowed the solid US employment data and hopes that the Greek deadlock might be resolved.

Today sees the UK and US update on producer Price Inflation. How much are producers getting for what they make? More is good, although can be countered by consumers having to pay more. Catch 22. Italian short-term bond auction could be of interest with yields having risen lately.

Keep in touch with your trader for the latest on the markets.

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

• UK                    Nationwide Cons Conf            Declined
• China               Consumer Price Inflation        In-line
• China               Various data (see calendar)   Worse
• India                Industrial Production              Worse
• Germany         Consumer Price Inflation        in-Line

• See calendar for all details.

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

• IAG losses swell as fuel prices, weak Spain hurt
• Thomas Cook aircraft sales raise £182.9m
• Serco says AWE pricing agreed through to 2018
• Centrica says trading in line with views
• International Power completes partial sale of Bahrain plant
• Petrofac confident of hitting profit growth target
• Gulf Keystone spuds Bakrman-1 exploration well
• Oxford Biomedica says has £9m of cash
• President Petroleum full-year loss widens
• Logica Q1 revenue flat, orders down

Morning Press Selection:

• JPMorgan loses $2bn in ‘egregious’ error – FT.com – Banks http://on.ft.com/J18x0H
• Investment banks await ratings verdict – FT.com – Banks http://on.ft.com/K6NJzT
• BoE fears inflation more than recession – FT.com – UK Economy http://on.ft.com/INFTPw
• Spain offered time to curb deficit – FT.com – EU Economy http://on.ft.com/K6b2Kg
• Greece is falling out of Europe – FT.com – Columnists http://on.ft.com/INB6gP
• Qataris target 10% Xstrata stake – FT.com – Mining http://on.ft.com/KOlFke