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

  UK 100 called to open flat, after Asian equities were mostly higher overnight during a subdued trading session on account of Australia and New Zealand closed for holidays and a lack of overnight data to guide sentiment.

 Japan benefiting from continued JPY weakness ahead of Friday’s BoJ policy meeting. South Korean GDP beat estimates despite FX competition on exports from Japan and on-going geopolitical tensions.

 US markets closed flat, supported still by earnings season (EPS beat, Revenues light – good for margins) and stimulus addicts satisfied by hopes that that new signs of macro-economic fragility mean continued/renewed central bank intervention to help out (Fed & ECB).

 US Telecoms major Verizon reported to be preparing to buyout JV partner Vodafone’s stake in Verizon Wireless (up to $100bn cash + stock). Keep an eye on shares in the UK giant today. Apple weighed on Tech sentiment with investors harder to please than customers, with the former wanting products more than share buybacks.

 In Europe, still optimism that Italy can arrive at a solution to its political deadlock, however, Slovenia has revealed its banks need €900m in recapitalisation. Can this one be as well managed as Cyprus (I mean quick, rather than being sarcastic about messy resolution).

 In focus today will be the UK and an update as to whether the Chancellor has done a Houdini twice in one week; Government borrowing dipping first (only just in 2012) and Q1 hopefully showing at least stable GDP growth, avoiding the dreaded triple-dip recession (only just, again). Beware revisions to prior quarters could also see triple-dip avoided or even compounded.  The key UK Services sector is seen showing tepid growth in Feb.

 Spanish unemployment unlikely to bring good news, US Weekly Jobless Claims are seen flat and a raft of US majors including UPS, 3M, Conocophilips, Colgate, Exxon, Amazon, Starbucks report Q1 results. The trend this week has been to beat EPS consensus but miss on revenues. Bad news for sales, but good news for cost cutting & margins.

UK 100 tested 3 & 11 April highs of 6430 yesterday but found resistance overnight around 6440. Risk appetite still there. Likely just taking a breather awaiting UK GDP data at 9.30am. Potential range now 6350-6500, which could help with renewal of long-term uptrend.

 Expectations of more currency weakening QE by the Fed to offset poor macro data (housing, manufacturing, durable goods) saw USD weaken, benefiting commodities.

 Gold continues its rebound, regaining $1440 levels last seen mid-month, breaking above Monday’s highs which could now serve as support (depending on QE sentiment).

 Oils maintaining their recoveries with Brent Crude revisiting mid-month levels of $102 this morning, while US Light Crude did the same touching $92 overnight.

 In FX, GBP/USD weaker but potentially has a trendline of falling highs and thus resistance to contend with at 1.534. Support still at 1.52. UK GDP and US GDP tomorrow could both have a big impact on the major pair. EUR/USD pulled back from overnight highs of 1.306 (potentially broken above falling highs) with opposing forces of expectations of more Fed QE and an ECB rate cut ruling the pair. These and US GDP likely to be near term drivers.

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

• N/A
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UK Company Headlines: (Source: Reuters/DJ Newswires)

• Croda profit grows on lower interest costs; reiterates outlook
• Kazakhmys says Q1 copper output ticks higher
• BAT confident on earnings outlook after good start to year
• Go Ahead says full – year expectations unchanged
• Filtrona quarterly revenue grows 12 percent
• Admiral turnover dips as UK car insurance premiums fall
• Dialight says confident in meeting market expectations
• Taylor Wimpey – Sales at upper end of firm’s expectations
• Russia’s Polymetal Q1 gold production up 16 pct
• Cobham says full year outlook unchanged, order book stable
• AstraZeneca Q1 sales tumble as generic losses bite deep
• SDL remains confident on year despite muted start
• St. James’s Place says funds under management 39 bln stg
• Diageo launches $3.25 billion fixed rate bonds
• Unilever sales growth misses forecasts