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

UK 100 called to open +15pts at 6655, maintaining its slow advance higher from recent support at 6500, helped by more record highs for the S&P500 (tech + consumer names rallying) on the back of positive US Manufacturing sector sentiment (Europe was more mixed) suggesting the winter didn’t disrupt the US recovery too much and increased US vehicle sales (a sign of consumer confidence).

 Beware however that after the gains of late on hopes of intervention/stimulus by ECB that some reluctance may kick in to commit ahead of Thursday’s key policy decision in Frankfurt as well as Friday’s update on the employment situation in the world’s #1 economy, the US. Note the ECB’s Constancio saying no risk of deflation ad expecting Eurozone CPI to rebound in April (next month Rodney. Next month!).

 Equities in Asia following suit (6^th day higher) with progress across the board, with Japan’s Nikkei helped >15,000 by a weaker JPY on enhanced BoJ easing speculation following yesterday’s sales tax hike and poor survey data, and even China benefiting from some of the same, although gains ex-Japan likely muted ahead of the US jobs report as well as PMI Services data out of China and Europe tomorrow morning.

 On the geopolitical front, note NATO taking a defiant stance against, suspending all civilian and military programs with Russia in an effort to force a resolution on Ukraine while the US House of Representatives passed legislation with Ukraine aid and sanctions in Russia.

 Overnight data was fairly light comprising expansion, but slowing, of the Japanese monetary base amid PM Abe’s the stimulus programme to end deflation, while Australian Building Approvals took a dive in February. UK Nationwide House Prices are a bit short of consensus, but still holding near double-digits over the year.

 In focus today we have UK March Construction PMI seen holding well above 60, however beware of it giving up some ground like manufacturing yesterday. With all eyes on Eurozone inflation, or rather disinflation, and Frankfurt’s potential policy move on Thursday watch out for Eurozone Producer Prices seen remaining weak in Feb.

 In the afternoon, US ADP Employment data will be keenly spied as a warm up for Friday’s Non-Farm Payrolls (NFP), with a big jump from 140K to 195K expected in the former helping the latter grind higher back towards the 200K level from 175K last month. US Factory Orders seen improving in Feb after a weather-impacted Jan and the Fed’s Lockhart and Bullard speak after the European close.

 In Commodities: Gold bounced off 7-week lows of $1278/oz despite risk appetite maintaining course as investors sought some exposure based on improving physical demand from China, and amid speculation of new/more easing  by multiple central banks. Industrial metal Copper has climbed to a 3-week high of $6729/tn on concerns that Chilean supplies may be disrupted by an earthquake and on hopes of Chinese stability being assured by stimulus measures.

WTI crude dropped below $100/bl on speculation that US inventories gained for an 11^th week as the US manufacturing reading rose less than expected. Brent crude also dropped but is holding above $105.

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

• US        Vehicle Sales                           Beat, Improved
• JP         Monetary base                        Growth slowed
• AU       Building Approvals                  Miss, Deteriorated
• UK        Nationwide House Prices        Mixed

See Live Macro calendar for all details

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

• BP to close Australian refinery as mega-plant competition mounts
• Green Dragon Gas enters binding agreement with CNOOC unit
• Smiths Group names Silvio Bracone as strategy director
• Restaurant Group appoints Danny Breithaupt as CEO
• GSK stops lung cancer vaccine trial
• Firstgroup says profit in line with expectations
• Domino’s Pizza posts 10.8 pct rise in Q1 UK sales
• Cupid says full year revenue from cont ops flat
• ASOS profit falls on expansion costs
• Max Petroleum says successful drilling results at final well in Sagiz West programme
• Fastjet says in talks with Stelios’s easyGroup and other parties on financing