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

UK 100 called to open +10pts, with Asia mostly lower overnight (although off lows) after European and US sell-off, as concerns over global growth remain dominant driver, with tech giant Apple not helping as its shares fell following worse results from a supplier and talk of lower iPad shipments.

The rout in commodities has continued overnight with plenty of Fed talk about increasing asset purchases (yes you read that right, increasing not tapering) if inflation falls further. The US Beige Book called growth as moderate. Australian resources names (several with London listings) falling heavily after the IMF,  G20 and Canada doused optimism.

Sentiment not helped by Chinese Property Prices figures showing a continued rise, likely fuelled by a rush to sign off on deals before implementation of new curbs (capital gains tax) designed to calm things. Sharp slowdown on its way? Inflation to drop. Easing necessary?

Good news from still sold growth in foreign direct investment to China, which will likely go some way to maintaining current global uncertainty. Strong growth suggests optimism from abroad. But are things getting better, worse, or neither in the world’s #2 economy.

While QE efficacy called into question (limited growth and inflation) the latest central bank to the party, and the one which brought the most booze – the BoJ – is said to set its inflation forecast for 2% in 2 years. From nothing to 2% in 2 years? This is in addition to better trade balance data and department store sales overnight.

After speculation of a German downgrade hit European markets yesterday, lesser known Eagan Jones was the one to deliver, cutting the European core nation to A from A+, citing greater potential exposure to troubles in the whole of Europe. The ECB’s Weidman also spooked the EUR by suggesting rates could be cut.

After decent Q1 results from peers, US banks names BNY Mellon and BoA-ML disappointed investors as did on-line trader eBay after the close. Even AMEX traded lower despite beating consensus. Good news from the Korean peninsula with the North seemingly prepared to revert to dialogue but only in return for the removal of UN sanctions.

In focus today will be the G20 meeting with a leaked draft communique showing continued commitment to avoiding currency devaluation and reversion to market-derived rates, as well as the observation of a weaker and uneven global outlook. In Italy steps closer to new President, which could help unlock political deadlock after failed elections.

Data-wise watch out for UK Retail Sales which are seen slowing sharply in March, impacted significantly by the bitterly cold weather. In the afternoon, we have US jobless claims, as well as Q1 results from more big US names like PepsiCo, Philip Morris, Morgan Stanley and Verizon, with the latter two likely most in focus for more clues on the banking sector and given recent speculation surrounding Vodafone.

 Note this evening sees IBM, Google and Microsoft which could impact/dictate sentiment for the final trading session of the week.

UK 100 off its worst levels, but back near support at 6215 lows dating back to early Feb. Resistance at 6340, potentially even 6280.

 Gold stable around $1375 but worries abound that trading $1320-1400, could just be a pause before another leg of the sell-off. Safehaven? Long term maybe, but part of reason for speed of recent sell-off comes from increased short-term and leveraged interest which can’t cope with moves of such magnitude.

In Oil, Brent Crude and US Light Crude still under pressure testing $96 and $85 handles overnight as macro growth concerns persist. Resistance likely around $100 and $89, respectively.

In FX, GBP/USD back down at 1.525 from highs of 1.54 after poor UK unemployment data and BoE minutes. EUR/USD also fallen back sharply from 1.32 but found support 1.30.

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

• Japan               Merchandise Trade Balance              Better
• Aussie              Business Confidence                           Improved
• China               Property Prices                                   Strong, but new restrictions
• China               Foreign Direct Investment                  Better
• Japan               Nationwide Dept Store Sales              Improved
• See Live Macro calendar for all details

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

• Devro says lower yields in Q1 will impact profits
• Dairy Crest revises capital structure
• Diageo 9 mth organic net sales growth up 5 pct
• SABMiller trading in line as revenue up 7 pct
• Debenhams first half profit falls 5 pct
• Parts maker GKN profit falls 4 pct
• NCC warns on profit as it misses growth target
• Kingfisher takes Brico Dépôt into Romania
• Soco says confident TGT output can go higher after tests
• Fresnillo reviews capex, exploration after silver, gold rout
• African Barrick says on track to meet 2013 targets
• Synergy Health says trading robust
• Weir expands ore-processing platform