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

UK 100 called to open -5pts after US markets were held back by a raft of weak data from both Europe (PMI, IFO, GDP) and the US (jobless, durable goods orders) and another EU summit passing.

This combined with the lingering fears that Greece might leave the Euro (politicians increasingly vocal on the topic; for and against) saw US markets fail to gain the traction seen in Europe which was possibly based on an increased possibility of ECB and BoE intervention to stimulate markets and discussion about Eurobonds to share Eurozone sovereign funding costs. Spain also a worry with talks of recently rescued bank Bankia asking for more money.

Note, however that US markets rallied in late trading on comments from Italian PM Monti that more countries at the summit were in favour of Eurobonds than were against.

Overnight, Asian markets have been hovering around breakeven after the muted close by US, with caution ahead of the weekend, continued concerns over the fate of the Eurozone and, after the weak macro data yesterday, global growth. Macro data had limited impact, with Japanese consumer inflation data showing a rise for the third month in a row. Chinese MNI Business conditions beat expectations but showed contraction from the prior month.

Weaker EUR on fears of Greek exit, and GBP on fears of more QE, both benefiting USD , impacting commodities like Gold and Oil. EURUSD down at 20 month lows. GBPUSD back at Feb/Mar lows. GBPEUR found some resistance around 1.25

Our macro calendar looks very quiet today with only Italian Retail Sales and the US University of Michigan confidence figure. Traders likely to remain focused on the Eurozone issues and/or solutions which is likely to keep the markets interesting. Take a look at our broker Upgrades/Downgrades publication. My colleague has had his work cut out compiling them this morning.

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

• Japan               Consumer Inflation                 Better
• China               MNI May Bus Conds               Better, but contracted
• Germany         GFK Consumer Confidence     Better, but flat
• See calendar for all details

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

• Gulf Keystone says starts drilling Sheikh Adi-2 well
• Intl PPL to raise £180m in placing, open offer
• Fairpoint Group performance in-line with market expectations for the year
• Interserve Consortium with John Laing , Laing O’Rourke named preferred bidder

Morning Press Selection:

• Hollande hardens line on links with Merkel – FT.com – Europe http://on.ft.com/LdonDt
• Big European funds dump euro assets – FT.com – Currencies http://on.ft.com/Le1m3p
• Beware hidden costs as banks eye ‘Grexit’ – FT.com – Markets http://on.ft.com/LuGFQj
• Last tweet for Derwent’s Absolute Return – FT.com – Capital Markets http://on.ft.com/MvT1XX
• Risks for bargain hunters in Europe – FT.com – Front page http://on.ft.com/Lg7acM