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

UK 100 called to open +10pts as Asian shares hold steady amid Greek (and Spanish) caution regarding its political instability and potential for exit from the Eurozone thanks to better than expected Japanese GDP and some good industrial data from the nation. US markets, like Europe, closed lower after another day of volatility with the Greek crisis (and Spanish financial sector) remaining very much in the driving seat (new Greek elections confirmed, ECB freezing out some Greek banks from liquidity assistance, Spain calling in independent valuers over real estate loans), but US bourses closed off their lows thanks to some respite via good US housing starts and industrial production data.

Minutes from the US Fed’s last meeting failed to provide any more colour on whether the US central bank stands ready to print more money when its ‘Twist’ operation (bringing down long-term bond yields) ends in June. The panel left its view of the US economy unchanged given the mixed macro data of late and on-going problems on this side of the Atlantic. This was in contrast to the Bank of England which downgraded growth prospects in its inflation report yesterday – pushing out its dates for growth and inflation falls yet further.

Commodities (Gold, Silver, Oils) have found support overnight despite the US dollar (commodities’ currency of refernce) remaining strong versus its major peers as traders seek havens from the market turmoil and no talk of QE3 by the Fed last night.

Macro data thin today, but focus likely on Spain’s final Q1 GDP figure and 3 & 4 yr bond auctions given that 10yr yields are now considered unsustainable and  Spanish PM Rajoy has warned that the country risks being shut out of the financial markets. US jobless data and Philadelphia Fed of interest in the afternoon – the former is expected to show little change on the previous week, while the latter should show some improvement since last month.

Facebooks’s IPO (planned for Friday) still garnering much attention with an increase to the offer price band and the number of shares being placed based on high demand for investor participation.

Results out this morning from UK 100 components including Aviva, (AV) National Grid (NG), Antofagasta (ANTO) and Vedanta (VED).

Note: Many European markets closed today on account of Ascension religious holiday, which may see tomorrow also quiet as investors bridge the gap and make it a long weekend.

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

• Japan               GDP                                         Better
• Aussie              Avg Weekly Wages                 Better
• Japan               Capacity Use                           Better
• Japan               Industrial production              Better
• Japan               Machine Tool Orders              Worse
• See calendar for all details.

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

• Antofagasta says Q1 EBITDA up 35 pct year-on-year
• Aviva Q1 sales down, capital surplus up
• Vedanta posts 13 pct rise in full year core profit
• Kier Group says on course to meet its full-year expectations
• Amlin says rates up 4.3 pct in Q1
• National Grid full-year profit rises
• Kesa Electricals Q4 underlying sales – 5.9%, Darty France sales fall worsens
• Invensys operating profit falls 20 pct on China costs
• Premier Oil says on track to meet 2012 output guidance
• TalkTalk says on track for Q1 customer growth
• Cairn says will use $1.1 bln cash for new opportunities

Morning Press Selection:

• Cameron fears eurozone unravelling – FT.com – EU Economy http://on.ft.com/MlMQbo
• Bank of England optimism dented again – FT.com – UK Politics & Policy http://on.ft.com/KnJXT4
• ECB bars access to four Greek banks – FT.com – EU Economy http://on.ft.com/JTMPJT
• Spain bids to pin down real estate losses – FT.com – Banks http://on.ft.com/JhihnD
• Businesses brace for Greek exit – FT.com – Companies http://on.ft.com/IY5fFf
• Euro starts to crack as investors eye exit – FT.com – Currencies http://on.ft.com/JN7bmL
• Only the IMF can break euro logjam – FT.com – Markets http://on.ft.com/KsWsAn