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

UK 100 called to open +15pts (note: ex-divs account for -15.4pts) after US markets pared losses, focusing on some good macro data following a messy European close with markets weighed the prospect of inconclusive elections and an inability to form a coalition in Greece leading to a possible withdrawal from bailout programme and exit from the single currency bloc. This was worryingly suggested by an ECB official, the institution having remained impartial until now.

Political concerns not limited to Greece, with France’s new socialist leader Mr Hollande still in focus. How far will he push for growth over austerity? How will he work with Merkel? More awkward summits and stalling in policy implementation? Oh joy!

Worries a bound regarding Spain’s banking sector and much life support it will require. This could well maintain pressure on the rest of the continents financial sector. At this point, you’d be quite right to ask if we’ve really made any progress in this crisis over the last year? But, without them, short-term trading wouldn’t be half as interesting. Every cloud, eh?

Overnight, Asian markets pressured by fears over Greece’s future in the Eurozone, but UK markets called flattish. Macro data a little disappointing with UK BRC Sales weaker than the expected slowdown after bad weather. Japanese data nothing special but German trade balance much stronger than expected, backing up the strong factory orders and industrial production this week which begs more question whether Germany is actually doing just fine.

Today is a very quiet day for macro data. If anything this is a bit worrying as markets will want something to talk about and my just go on the hunt for scraps, which can increase volatility. Note that ex-dividends account for a 15.4pt drop in the index this morning (so really the market is called +30pts, with AND, ANTO, BP, BNZL, GFS, GSK, RRS, REX, RDS and ULVR all paying out).

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

• UK                    BRC Sales                                Worse
• JP                     Leading Index                          Worse
• JP                     Coincident Index                     Better
• DE                    Trade Balance                         Better

• Results out from UK companies Sage (SGE), InterContinental Hotels (IHG), Sainsbury (SBRY) as well as a host of European corporates. See calendar for more details

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

• Rightmove Business continues to trade in line with the strong start to 2012
• Melrose posts higher revenue
• Resolution Q1 sales up 8 pct
• Weir Group says orders up, outlook in line
• Galliford Try on track to meet expectations for the financial year
• Glencore says marketing ops trading “robustly”
• Inmarsat Q1 core earnings up slightly
• Balfour Beatty sees recovery signs in U.S. construction
• ITV says to outperform TV market
• Petra Diamonds says on track to meet 2012 production target
• Sage H1 profit up 2 pct in line with expectations
• Sainsbury profit rises in tough UK market
• InterContinental profits boosted by US and China

Morning Press Selection:

• Spotlight on Greek left after poll surge – FT.com – Europe http://on.ft.com/KE5pI7
• Doubts spread to Spain’s big banks – FT.com – Europe http://on.ft.com/JQWBrz
• UK politics: Things can only get better – FT.com – Analysis http://on.ft.com/ISzj9Z
• Hollande at odds with key partners on structural reform – FT.com – Europe http://on.ft.com/IZRfhl
• Greek-led fall points to euro exit worries – FT.com – Capital Markets http://on.ft.com/L3v4Xd
• Gold drops below $1,600 – FT.com – Commodities http://on.ft.com/IIeDSu