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

UK 100 called to open -50pts at 6640, after US equities posted a sharp turnaround from record intra-day highs to close down around 1% after what had otherwise been taken as a satisfactory US jobs report (slightly below consensus, but back near 12-month average for job additions, upward revisions, participation up).

Where the report failed to deliver, however, was in its inability to convince traders/analysts whether the Fed would slow, leave or speed up its programme of QE3 stimulus reduction. This helped Gold hold on to its gains to trade around recent highs of $1300/oz. Technology stocks were a major negative influence on equities, with the Nasdaq index falling by 2.6%.

After the ECB policy update on Thursday, and President Draghi keeping the door open (it’s been nearly 2 years now) for unconventional measures, there was speculation (denied of course) on Friday that after the ECB had been modelling for a QE programme worth €1tn, helping to generate some much desired inflation in the region.

Asian equities have started the week on the back foot ending an 8-day winning streak, following the US lower, with no major data to influence direction and with ongoing concerns relating to Chinese defaults and slowing growth (markets closed today). Japanese stocks gave up ground from 2-month highs ahead of the BoJ’s two day meeting. There is talk of the bank doubling its purchases of ETFs as part of a second round of QE.

Data-wise, the Australian Construction index improved, but remains well below 50, while Japanese Leading/Activity indices were pretty much in-line. In Europe, this morning, German Industrial Production for February was in-line, but not without downward revisions to January.

In focus today, we have UK Lloyds Employment confidence and Eurozone Sentix Investor Confidence along with some ECB/Fed speakers. A relatively quiet day after the busy end to last week, although keep an eye out for M&A sentiment boosting things after Swiss-based Holcim agreed to merge with France’s Lafarge to create the world’s biggest cement maker.

WTI Crude and Brent fallen back a bit on news that Libyan rebels have agreed to re-open two oil terminals after a deal with the government. WTI back at $100.7/bl from $101.5/bl and Brent crude sub $106/bl from $107/bl.

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

• AU       Construction Index                  Improved
• JP         Leading/Coincident Indices    Mixed
• DE        Industrial Production               In-line

See Live Macro calendar for all details

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

• BG Group moves global LNG, oil trading headquarters to Singapore
• Rio Tinto to submit new Australia coal mine plan after losing legal fight
• Unite Group JV sells properties for 174 mln stg
• Kentz awarded a further $570m contract for Ichthys project
• Robert walters Q1 gross profit rises 3 pct to 48.1 mln stg
• Cranswick full-year underlying sales rise 12 pct