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

  UK 100 called to open +25pts, with Asian markets in the green, taking their lead from a positive US close despite continued mixed signals from the world’s #1 economy and continued concern at weak growth from China and the IMF cutting growth forecasts – the UK more than anywhere else, and warning Chancellor Osborne to adopt ‘Plan B’ and slow defect reduction to help growth.

US reported inflation was benign (lower fuel prices) which supported continuation of QE3 (good for risk appetite and commodities), but economic growth called into question after strong housing starts offset by worse building permits and details showing starts flattered by jump in apartment blocks for rentals (homebuild/ownership held back by tight credit conditions) while negative manufacturing production at odds with better industrial production.

Stateside sentiment and rebound also helped by good results (top and bottom line) from big names Coca Cola, J&J, Goldman Sachs, Blackrock early in the day failed to be doused by tech names Yahoo and Intel missing analyst forecasts after the close, the former on sales, the latter on sales and profits.

In Asia, Japan’s Nikkei helped by weaker JPY but China, Hong Kong and South Korea off the pace after the Chinese growth data and the uncertainty regarding the North Korea’s intentions. Note also the front page FT article quoting a senior Chinese auditor as suggesting China local government debt “out of control” and could spark a worse financial crisis than the US housing collapse.

In focus today, UK unemployment seen largely unchanged in terms of claimants and rates, but the number of employment additions is likely to have slowed . Eurozone Construction Output likely to have remained under pressure in February from cold weather. The Bank of England’s MPC minutes will be watched for any change in voting for more/less QE. More Q1 results from the US with BNY-Mellon and BoA-ML before the open, and Amex and eBay after the close.

Some stability in the UK 100 yesterday after the Monday’s sell-off, although a failure to break the 6340 resistance which had been support while Cyprus negotiated rescue in mid-March. Narrow range 6300-6340. Watch for breakout.

 Gold also found some stability around $1375 after plumbing 2yr lows of $1320, however, a revisit of $1400 was short-lived, with many remaining uncertain about the metals status as a safehaven given the pain that has been inflicted on the many who has relied on it as a store for wealth in time of trouble/inflation.

In Oil, Brent Crude off its worst levels of $98 as commodities found some support after the April sell-off from $111 on global growth concerns. US Light Crude down the same, bouncing from $86 after declines from recent highs of $97.

In FX, GBP/USD remains around 1.53 but off the recent highs of 1.54. Support possible 1.5275. Uptrend from March lows still intact. EUR/USD taken a leg up to test 1.32 as USD seen weakening on continued QE3 outweighing the single currencies concerns. Support now likely at 1.31. Resistance possible at 1.34.

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

• Australia          Westpac Leading Index                       Improved, no consensus
• Japan               Consumer Confidence                                    Worse than expected
• Europe             EU-27 New Car Registrations             Still very weak
• See Live Macro calendar for all details

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

• Hargreaves Lansdown revenues rise on asset growth
• Amerisur full-year operating profit rises six times
• Smiths News interim profit rises
• Afferro receives potential offer from IMIC, no decision made
• Sepura sees year profits beating market expectations
• CPPGroup to sell North American business for $40 mln
• Burberry second half revenue up 9 percent
• Hochschild Mining says implementing plan to conserve capital
• Petra Diamonds discovers high quality blue diamond
• Falkland Islands Holdings sees 3 mln stg yr profit
• Speedy Hire sees profit for year beating view
• Hunting says trading in line
• Tesco quits U.S. as profits fall
• Marston’s trading hit by cold weather
• JD Sports year profit falls 20 pct
• Bunzl revenue, margins in line with expectations
• Moneysupermarket.Com Q1 earnings up 31 pct