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

  UK 100 called to open flat at 6410 with Friday’s rebound, thanks to a US Non-Farm Payrolls (NFP) figure that failed to intensify fears of the US Federal Reserve tapering its market risk prop QE3 in the coming months but sure to keep debate raging, losing momentum since the US close thanks to macro data from Asia.

 Weekend data from China was a little disappointing in terms of exports, imports and inflation coming in well below expectations (exports only just positive, imports negative), adding to uncertainty surrounding the strength of the both world’s #2 economy and the health of the global recovery.

 Asian bourses buoyant, helped by Japan providing good news in the form of better than expected GDP numbers this morning, increasing confidence in the massive stimulus (Abe-nomics) underway in the world’s #3 economy, designed to rescue it from both economic depression/stagnation and deflation.  Australia weak on Chinese data, and failing to be buoyed by Japan’s.

 Japan’s Nikkei further helped by a weaker JPY (helped by stronger USD, supportive for exporters) and Prime Minister Abe saying bold tax cuts (including on CAPEX investment) could be part of grand strategy. Likely continued focus on fallout from Friday’s US Labour report.

 In focus today, will be Eurozone Sentix Investor Sentiment which is seen improved but still negative, while Italian GDP is seen confirmed at the negative preliminary reading.

 Later in the week, look out for red cloaks and funny hats as Germany’s constitutional court discusses whether the ECB overstepped the mark with its ‘whatever it takes’ and yet-to-be-used but market-calming OMT plan (sovereign bond market intervention), although no ruling expected for a few months. UK Industrial and Manufacturing Production seen flat tomorrow, and Eurozone inflation remaining benign on Wednesday.

 UK 100 rebound lost momentum around the European close on Friday and back trading around 6400. Pause before another push higher? Or uncertainty still just as rife as it was last week, not on US data but on Chinese? If it isn’t one it’s the other, eh!?

 In FX, GBP/USD back from post-NFP highs of 1.57 as USD strengthens a touch following heavy losses last week in the run-up to the US Labour report. Trading 1.55, back below early May highs. Same story for EUR/USD, but yet to fall decisively below April/May highs of 1.32. USD/JPY rebound continued through 98 after testing lows of 95 last week. Still a way off regaining May highs of 103.5 though. Stimulus done all it can?

 Gold hindered by USD post-NFP strengthening. Back from its recent $1420-highs, it has fallen below its $1400 mid-point since mid-May, and on to lest $1380 lows of last fortnight.

 The Oils have slowed up after the USD found some support on NFP data. US light Crude slowed at June highs of $96.5 while Brent Crude also turned back from recent highs $104.75 after strong June rebound. Slow-up likely in response to less bullish macro data putting global economic recovery and thus demand into question, but note giving up much ground yet.

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

• China               Trade Balance                         Better
• China               Exports                                    Worse
• China               Imports                                    Worse
• China               CPI                                           Worse
• China               PPI                                           Worse
• China               Industrial Production              Mixed
• China               Fixed Asset Investment           Worse 
• China               Retail Sales                             In-line
• Japan               GDP                                         Better

See Live Macro calendar for all details

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

• Balfour Beatty to close three UK regional businesses
• Balfour wins 110 mln stg Providence tower deal
• Amec awarded 110 mln stg extension to BG Group contract
• Punch Taverns proposes revised restructuring
• Bid consortium says no new offer without Severn Trent talks
• AstraZeneca buys lung drug firm Pearl for up to $1.15 bln