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

UK 100 called to open -10pts, with Asia flat to just positive as bourses climb for the first time this week, helped by Japanese car manufacturers benefiting from bullish comments regarding the now long-running island dispute with China which have dented trade relations and thus demand.

Chinese equities also up ahead of a plethora of likely market-moving macro data starting this weekend (trade data) and continuing into next week (Inflation, GDP). Expectations the data will serve as a push towards more stimulus?

US markets gave up earlier jobs-fuelled gains with an improved initial jobless claims figure being attributed to a technical error, suggesting the pressured US employment environment persists. Further dampening of sentiment came from Fed officials talking of QE3 risks, offsetting optimism from claims that Greece had made progress with the troika of bailout lenders.

Global growth worries and concerns over the potential for US Q3 earnings season to disappoint appear to be holding back any rush to the upside, with the IMF continuing to sound the bells of worry and in cases contradicting earlier calls – cut back on austerity if growth slows, give Greece more time, global slowdown but no China hard landing.

Overnight, macro data shows Japanese money supply and Tertiary Industry Index in-line, but its Monthly Economic Report seeing government revise down its overall assessment for the third month in a row. Those worried about an Asia slowdown will, however, be pleased to see Indian Industrial Production well ahead of expectation, improving markedly on last month, and Singapore avoiding a technical recession thanks to an upgrade to Q2 GDP.

The US Q3 earnings season steps up a gear today with JPMorgan and Wells Fargo providing the first updates for the all-important financial sector. This could provide a knock-on to the European banks  which have already rallied strongly on the ECB and Fed pledge/intervention.

In FX and Commodities, GBP/USD a touch higher as risk aversion eased. EUR/USD flat since the US jobs data. Platform before another rally? GBP/EUR back down near lows of yesterday. Support? Gold slightly firmer on weaker dollar. In the Oil arena, Brent Crude continues to do better than its US cousin with geopolitical risks prevailing and US Crude finding resistance at 1-month highs.

Today’s focus will be on the US banks results. Data-wise though, Eurozone Industrial Production with deterioration in growth expected in August. US Producer Prices are seen posting slowing growth in September, but excluding Food and energy things are seen flat. The week closes with publication of the US Uni of Michigan Consumer Confidence which is expected to drop back again after last month’s disappointment.

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

• Japan               Tertiary Industry Index                       In-line
• India                Industrial Production                         Better
• See Live Macro calendar for all details

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

• Carlyle gets more time to make an offer for Chemring
• Morgan Crucible warns on profit as trading weakens
• Subsea 7 wins $300 mln deal from BP
• Rockhopper gets nod for farm-out with Premier Oil
• Computacenter third quarter revenue rises
• Hargreaves Lansdown Q1 net inflows 550 mln stg
• UNITE sells Devonshire Street property for 15.25 mln stg
• Travis Perkins sales slip in Q3
• Interserve sells PFI stakes for total 89.5 mln stg