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

UK 100 called to open +20pts, with Asian bourses rebounding after Friday’s surprisingly poor US Employment data (less jobs added, unemployment rate down only because of worrying fall in participation rate) and Japan’s Nikkei continuing to benefit more strongly thanks to the BoJ’s shock-and-awe extreme monetary easing and its programme kicking off today with an offer to buy ¥1.2tn of JGB’s (note: JPY weakened back to Jun 2009 lows).

In Asia, the North Korean situation continues to command much attention with South Korea reporting that the North was preparing for a 4^th nuclear test. In China, equities weak (after long weekend) on bird-flu outbreak impacting tourism-related names and President Xi being downbeat on potential for high growth to be maintained. Central bank (PBOC) warns on inflation and George Soros tempers praise for government and warns of risks.

US markets closed lower on the US jobs data was worries persist on the Fed’s QE programme. With an improved rate of unemployment linked to people giving up looking for a job, and less job adds linked to recent budget sequestration this reduces the chances the Fed’s stops its QE programme any time soon (something normally good for risk appetite), but confidence in its efficacy is also being called into question with no real improvement in the employment indicators the Fed is watching.

Ratings agency Moody’s positive on BoJ’s bold policy move and its impact on banks and says it buys time for government, but is not without risks. The IMF’s Lagarde also backed the central bank for its aggressive move. More positive news ratings from S&P as it left the UK’s AAA alone, but with a continued negative outlook. Portugal in focus after announcing severe spending cuts to keep 1^st bailout on track after high court rejected other measures.

Overnight macro data included a slight deterioration in the Lloyds Employment Confidence, while in Australia the Construction sector’s performance took a step back. In Japan, current account and trade balance mixed, while Eco Watcher Surveys in-line to better.

In focus today, amid a quiet calendar, will be the Eurozone Investor Confidence which is expected to have pulled back in April, while in Germany Industrial Production is seen having improved in February. US Q1 2013 earnings season also kicks off this evening (Alcoa, Aluminium) which is sure to generate much discussion given metals price pressure and economic growth concerns. JPMorgan starts the Bank sector off on Friday.

After the UK 100 pulled back to late January lows of 6215 we have had a bounce of sorts towards the 6300. Plenty of concerns still around such as whether central banks continue to help out risk appetite and the efficacy of their action. Resistance likely at breakdown below Cyprus support at 6340.

Gold rebounded from $1550 after poor Jobs data to regain $1570 but still in bearish trend with downside possible to $1520. Resistance possible again around the $1600 level.

In Oils, US light Crude found some support around $92 at end-March lows, but Brent Crude remains under pressure with a test of $103.5 and new month lows reached.

In FX, GBP/USD rallied on weak US jobs data and breaking above 1.525 resistance to regain 1.53. Shallow April rebound persists. EUR/USD off its best levels after US jobs numbers and back below 1.30. April uptrend remains.

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

• UK                    Lloyds Employment Confidence         Deteriorated, no consensus
• Aussie              AIG Construction Performance           Deteriorated, no consensus
• Japan               Current Account & Trade Balance     Worse than expected
• Japan               Eco Watchers Survey – Current          Better than expected
• Japan               Eco Watchers Survey – Outlook         Deteriorated, no consensus
• See Live Macro calendar for all details

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

• Findel sees full-year in line
• Genel says shareholder PRM to distribute suspended shares
• Xcite Energy reserves rise, seeks partner for Bentley field
• William Sinclair says spring selling delayed by bad weather
• Faroe Petroleum says Darwin exploration well dry
• Max Petroleum starts drilling on new Zhana Makat well
• Premier Oil says partner Lundin finds oil at Luno prospect
• Russia’s Polymetal 2012 net profit up 38 pct, misses f’cast