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

UK 100 called to open +30pts, with Asia-Pacific trading higher again benefiting from the BoJ’s aggressive easing policy, hopes that softer Chinese inflation figures (lower food prices) would mean continued loose policy from Beijing and a well taken Q1 results by US earnings season starter Alcoa, with one-offs and cost cutting offsetting lower aluminium prices.

US markets closed higher despite a shaky start, regaining some ground after Friday’s poor US jobs data despite a lack of direction driving data and some optimism ahead of earnings season starting.

Other overnight macro data included better numbers from the UK’s High Street and House Prices and mixed Aussie Business sentiment. This morning, we have just had a widening in German trade surplus, despite both imports and exports taking a dive in February.

Fed Chairman Bernanke speaking in the wee hours said much work to be done before ‘economic health’ and that principal tool used to tighten policy will be interest on excess reserves (IOER) and that sales of asset purchases will come later in the tightening process.

The Korean peninsula remains highly concerning with the North/South border technology complex seeing Northern workers fail to show for work, while Japan has deployed precautionary missile interceptors around Tokyo.

In focus today, we have another quiet line-up with just UK Industrial & Manufacturing Production where rebounds are expected by both in February after a very weak January.

In the afternoon, after the IMF provides its update on the World Economic Outlook, we get the updated UK GDP estimate from NIESR (positive/negative? Revisions?). The day closes with the US report on Wholesale Sales and Inventories (former seen rebounding).

The UK 100 ’s bounce from 2-month lows post Friday’s Non-Farm Payrolls has continued overnight and the index is approaching the 6340 level of support (Cyprus lows) given up on Friday. Could this now revert to resistance?

Gold pulled back a bit again after the Non-Farm Payrolls bounce which saw demand for the safehaven in light of US growth concerns.  Downside still possible to $1520, should risk appetite focus more on the central bank accommodation than macro data. Resistance for any rally likely again at $1600/$1615 which were hurdles late Feb and throughout March.

In Oils, US light Crude broken up through $93.5 and with a new uptrend possible after yesterday’s lows exceeding the prior day’s revisit of 1-month support. Now off 1-month lows. Brent Crude still in downtrend and in contrast to US Light Crude, overnight highs have failed to meet the prior day’s.

In FX, GBP/USD off its best levels in the wake of the US jobs data. Support possible at 1.52, with shallow uptrend from, mid-March. EUR/USD still in uptrend from last Thursday’s lows and close to regaining March off highs of 1.31. Both pairs have work to do before 3-month downtrends are reversed.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – all part of the service.

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

• UK                    BRC Sales                                            Grew more than expected
• UK                    RICS House Price Balance                   Fell less than expected
• Aussie              NAB Business Conditions                    Deteriorated , no consensus
• Aussie              NAB Business Confidence                   Improved, no consensus
• China               Consumer Price Inflation                    Fell more than expected
• China               Producer Price Inflation                      Deteriorated, in-line
• Japan               Machine Tool Orders                          Remain weak
• Swiss                Unemployment rate                           Lower than expected
• Germany         Imports                                                Fell more than expected
• Germany         Exports                                                Fell more than expected
• German           Trade Balance                                     Bigger surplus than expected
• German           Current Account                                  Bigger surplus than expected
• See Live Macro calendar for all details

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

• Shanks sees results broadly in line with forecasts
• Victrex says first-half sales volume at 1,392 tonnes
• Robert Walters says first-quarter gross profit at 46.6 mln stg
• St Modwen says profits and cash flows in line
• UK Mail sees Q4 outcome above previous expectations
• Firstgroup says trading in line, UK rail growth continues
• Oxford Instruments year profit to make forecasts
• Wood Group says France’s Total extends N.Sea contract
• Ferrexpo pellet production up 10 percent
• Amur Minerals sees benefit from tax break in far east Russia
• AZ Electronic Materials Q1 revenue down 2 pct
• Tullow Oil sells Bangladesh unit for $42 mln
• Centamin says on track for 2013 output target
• JKX Oil and Gas profit falls