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

  UK 100 called to open -5pts, with Asian equities mixed overnight as the BoJ left rates unchanged and no major changes to statement, seeing the JPY strengthen slightly and the Nikkei track back. Markets holding recent gains on anticipation of ECB rate cut and continue central bank accommodation, but equities look like taking a breather.

Japan’s Consumer price inflation data came in more negative than expected, supporting the recently announced aggressive monetary policy by BoJ as well as showing the hurdles ahead just to get out of deflation and into inflation never mind 2% target.

In Australia, expectations of a rate cut by the RBA grew after a report by Goldman Sachs, suggesting a cut on May 7 and another in November. Watch AUD.

Hong Kong outperforming on regional earnings reports (strong report from Samsung last night) but China underperforming ahead of Golden Week holidays despite improved MNI Business sentiment reading.

Press article gaining interest in German daily Hadelsblatt suggesting Bundesbank President Weidman rejecting ECB’s OMT plan to buy debt of highly indebted countries. Also more comments from German politicians on central bank issues, something normally avoided.

Some negative comments from Bernanke regarding wholesale funding markets and vulnerabilities in ‘markets’ and a weaker results report from Amazon saw US index futures weaken overnight.

In focus today will be the afternoon’s US GDP update and whether the new forecast of 3% are more realistic (prior 4%) after the weak March macro data. With little else on the agenda, markets may well trade sideways this morning.

To close the week, US Uni of Michigan Confidence seen ticking up for the April final reading. US Q1 results also out from big names Goodyear, Chevron and Tyco.

UK 100 perhaps taking a breather after the 3.5% from recent lows, with little fanfare from the UK’s GDP beat, while no big change by BoJ, some negative comments from Bernanke and slower growth from internet giant Amazon may have taken wind out of market’s sails until this afternoon’s US GDP update and a long Asian weekend. Support possible 6415, resistance 6500.

Gold continues its rebound, regaining touching $1480 overnight, helped by GBP/USD weakening.

Oils maintaining strong recoveries with Brent Crude regaining $103 and US Light Crude almost getting back to $94 overnight.

In FX, GBP/USD weakened to above prior April highs of 1.54 after UK GDP beat. Support possible now at 1.54, however, beware of US GDP this afternoon which could result in another big move based on refreshed expectations on Fed QE.

EUR/USD still struggling around 1.30 with opposing forces of US QE and ECB rate cut ruling the roost. As mentioned, beware US GDP for effect on QE expectations and impact on USD.

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

• Japan               BoJ Interest Rate                     In-line
• Japan               Consumer Price Inflation        Worse
• China               MNI Business Sentiment         Improved
• Germany         Import Price Index                  In-line
• See Live Macrocalendar for all details

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

• French Connection FD steps down
• Cape awarded maintenance contract in Azerbaijan
• Centrica’s UK gas storage sales price 30 pct below last year
• Ocado says talks with Morrisons do not involve Morrison acquiring co
• Pearson first-quarter sales up 3 pct
• Rotork revenue rises on growth at fluid systems unit
• Prudential shares suspended – HKEx<2378.HK>
• Prudential names new UK & European CEO
• WPP nudges outlook higher after solid first quarter