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

UK 100 called to open +10pts at 6670, helped by another positive US session for equities and fresh record highs by the S&P500 and some positive PMI data from Asia overnight coupled with mini-stimulus from China (Railways, housing and business tax breaks). The grind higher for the UK 100 continues taking us back to levels last seen on 11 March.

 Yesterday’s March US ADP jobs data was in-line with a big upward revision to February which led many to expect a solid figure from tomorrow’s NFP, while US Factory Orders beat expectations in Feb calming some of the weather-related fears about Q1 growth. US optimism held to the close..

 Overnight, Asian equities again in the green with Japan’s Nikkei the outperformer on a weaker JPY, thanks to stimulus expectations, the US data and possibly the Fed’s Bullard giving some additional impetus to the USD by suggesting the first Fed rate hike could by in H1 2015 while remaining cautious on low inflation. Lockhart said H2 2014 so long as GDP growth hoods around 3%. Note our own BOE Governor Carney suggesting UK rates could rise before the next election 2015.

 Data-wise Japanese PMI Services and Composite showed improvements (services back >50), while Chinese official PMI Services softened a little from its prior 55 as did the HSBC Composite reading (still <50) however the HSBC print for Services nudged up to near 52 (best since November). Indian PMI Services slipped further below 50.

 In focus today we have a raft of final Eurozone PMI Services (all seen confirmed >50), however, any signs of weakness will be eyed as ammo for the ECB to be looking at help measures for the region to stave off dis-inflation and maintain growth. The UK figure (70% of GDP) is seen at 58. Eurozone Retail Sales are seen weak in Feb.

 The main event will be the ECB policy decision although consensus would suggest that no action in terms of stimulus to act in the face of falling inflation will be taken today, however, this week’s soft inflation reading could result in a rate cut. As always the statement and press conference will be key in terms of language and forward guidance.

 In the US, weekly jobless claims are seen almost unchanged along with the Trade balance, however the Services PMI is seen a touch higher for the final reading, with the ISM Non-Manufacturing following suit later in the afternoon.

 Commodities: Copper drops to $6,632 as mines in Chile return to normal operations after the government ordered an evacuation following an earthquake and Tsunami. Gold rose to $1,291.76 amid speculation that physical demand will strengthen while holdings in the largest exchange trade product were steady. WTI Crude drops 43c to $99.19 a barrel while Brent crude gained 11c to $104.90 a barrel amid speculation demand in May could be slowing. US Inventory data surprised with a Crude drawdown yesterday.

FX: Dollar reaches a two month high against the Yen of 103.87 ahead of Non-farm payroll data due out tomorrow. It was little changed at $1.3759 against the Euro and 92.16 against the Aussie.

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TODAY: JUSTEAT IPO at 8am

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

• AU       AIG Services Perf                     Deteriorated, <50
• JP         PMI Services                            Improved, >50
• JP         PMI Composite                        Improved
• AU       Retail Sales                             Soft, Deteriorated
• CN       HSBC Services PMI                  Improved
• CN       Non-Manufacturing PMI         Softened
• CN       Composite PMI                        Deteriorated

See Live Macro calendar for all details

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

• Mcbride says unlikely to meet year expectations as revenue falls
• British Land signs new 785 mln stg revolving credit facility
• Kingfisher in exclusive talks to buy France’s Mr Bricolage
• African Minerals swings into profit
• BTG sees year revenue around top end of guidance range
• Dunelm Group says third-quarter revenue rises 9.9 pct
• Electrocomponents fourth-quarter underlying sales rise 4 pct