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

UK 100 called to open -20pts after US markets moved lower from the European close with a downturn in risk sentiment fuelled by the ECB offering no hints at policy easing (rate cuts or more cheap cash) and weaker than expected US ISM Services which, given the importance of the sector and the weakness of GDP last week and ADP employment figures, kicked confidence  into touch ahead of today’s key data point: US Non-Farm Payrolls (NFP).

US NFP missed expectations by quite a margin last month, spooking markets. Should the number be particularly weak, calls for QE3 would likely intensify, boosting risk assets/denting the US Dollar. Should they be much stronger than expected markets could be put at ease that the US is growing, also helping risk. Win, win? Only at the extremes. An in-line figure may just mean it is bumbling along and generate little interest.

Overnight, Asian markets seen resources stocks and exporters in the red with normal risk aversion ahead of the US jobs number. Holidays still affecting the region. Markets also prepping for a busy political weekend in Europe with Greece and France going to the polls and change being demanded by voters. Chinese HSBC Non-Manufacturing PMI showed more growth which is a welcome data print from the increasingly watched emerging behemoth.

Today we have Europe reporting its final PMI Service figures. Prelims showed continued weakness in the region. Any improvements, would be much welcomed in a region which continues to be kicked by its sovereign debt crisis.

Results out from UK majority taxpayer-owned RBS look to show group operating profit of £1.2bn beating expectations (£800m-1.1bn), and a return to profitability after a loss in Q4. Its Q1 net loss, however, remains elevated at around £1.5bn.

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

• China               HSBC China Services PMI                   Improved

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

• RBS says on recovery path as Q1 profit ahead
• HMV sees FY loss of £16m, return to profit in 2012/13
• Laird sees 2012 to progress in line with its expectations
• Rolls-Royce sees strong full year profit growth
• Rentokil Q1 revenue up, eyes H2 City Link improvement
• Cove Energy says Barquentine-1 well test successful
• EasyJet April passenger traffic +8.6%

Morning Press Selection:

• Facebook aims for $96bn value on debut – FT.com – Technology http://on.ft.com/KgZpVw
• Draghi urges eurozone to focus on growth – FT.com – Europe http://on.ft.com/IpEASN
• Banks face tougher trading capital rules – FT.com – Banks http://on.ft.com/IGlvkh
• Banking: That shrinking feeling – FT.com – Analysis http://on.ft.com/IJ8Iwa
• What we know now: the BoE’s past 15 years – FT.com – Opinion http://on.ft.com/JuLvZ4