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

UK 100 called to open +20pts as US markets lost ground on lingering Eurozone concerns (Spain and Greece), but futures bounced overnight, boosted by, 1) the prospect of another Greek election meaning another chance for a pro-bailout party to get in, maintain agreed austerity plans and keep the country in the Eurozone; 2) News that the EFSF will still release the next tranche of much-needed aid for the troubled nation; 3) The Wall Street Journal has also reported that Eurozone governments are expected to give Spain some lee-way to meet its budget deficit next year, treating  it as ‘special case’.

Optimism put in check, however, by news that Spain had part nationalised Bankia to quell worries over its financial system. Good in that risk reduced, but bad in that it may not be the last. Does Spain have the means to support the sector? Many say No. Furthermore, if Spain is to be treated by peers as a ‘special case’, what does that say about sicking to these new fiscal rules?

Overnight, macro data supportive of risk assets with Chinese trade balance and Australian unemployment improving more than expected. However, China’s good number came from imports slowing to next-to no growth, offsetting Exports having slowed by more than expected (devil always in the detail). This has revived concerns over Chinese growth and the ‘emerging markets to the rescue’ hopes.

Today sees the ECB publish its report for May. What will it say regarding policy? The UK also updates on industrial Production. Can it improve on last month’s contraction? Later the Bank of England will update ion interest rates (no change expected for rates of QE) While US jobless and Trade Balance in the afternoon will be keenly watched as will the NIESR GDP estimate for the UK.

Keep in touch with your trader for the latest on the markets.

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

• Japan               Trade balance                         Better
• Australia          Unemployment                    Better
• China               Trade Balance                         Better

• Results out from UK Telecoms operator BT (BT.) and credit and marketing services company Experian (EXPN), as well as a host of European corporates. See calendar for more details.

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

• Supergroup Q4 sales up 14 pct
• Gulf Keystone says has no plans for fundraising
• Desire Petroleum sees further prospectivity in North Falklands
• Weir Group says orders up, outlook in line
• Wood Group sees full year in line with expectations
• Cove Energy says Mozambique gov gives nod for Shell Bidco offer
• Old Mutual funds under management up 6 pct
• ENRC warns Q1 revenue hit by drop in prices, volumes
• Barratt reports best Spring selling season in 5 yrs
• Great Portland raises $200m via placing
• BT lifts dividend after cost cuts boost earnings
• Dixons Retail says sales ahead of expectations
• Micro Focus expects FY results in line with guidance
• Experian to sell PriceGrabber, some online ops to Ybrant