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

UK 100 called to open -20pts, futures off their post-QE3 excitement multi-month highs, with US markets losing steam over the course of Friday with an element of profit taking after 7-days of major central bank action, from the European Central Banks (ECB) and US Federal Reserve (Fed) and a few Eurozone hurdles being cleared.

Following Bernanke’s announcement of a new round of asset purchases (MBS – mortgage backed securities) to reduce borrowing costs and boost economic growth, questions nonetheless asked about effectiveness of intervention, given the backlog in mortgage application processing in the US. Ratings agency Eagan Jones has also downgraded the US credit rating from AA- to AA, no convinced by Bernanke’s the new measures.

Asian markets had a positive start to the week with most bourses ex-China, in positive territory, but Japan closed. China weak on combination of political struggle with Japan over disputed islands, speculation that its housing market may see policy tightening in an environment where easing is being hoped for to reboot slowing growth.

Speculation still abound regarding Spain and whether it is discussing conditionality of ECB bond buying aid request or not. Following Bernanke’s pull of the trigger and the meeting of Eurozone finance ministers, focus likely to return to Europe and its on-going woes. When will Spain ask for help, allowing Draghi to act? Will Greece be given more time? How many banks will the ECB have to supervise? Thereafter, it’s still hoped that China still announce more stimulus especially after Investment back Citigroup cuts its GDP forecast to 7.6% from 8.0%.

Overnight, macro data shows an improvement in last month’s declines by the UK Rightmove House Prices, although year-on-year growth has slowed sharply.

This week, minutes from the Bank of England’s (BoE) recent Monetary Policy Committee (MPC) meeting could provide us with some more colour on thinking regarding economic stimulus, especially in light of ECB and Fed action. Outside of this, major data for the week is in the form of ZEW survey data and UK inflation figures on Tuesday, US housing on Wednesday, Eurozone PMI (all seen sub-50) and UK Retail Sales (expect another slowdown) on Thursday.

In Commodities, Gold not quite topped out as much as might be expected given the moves by equity markets. Still trading around recent and Feb-highs of $1770-1775 after Fed’s QE dollar-weakening, growth and inflation-boosting announcement. Oil (US Light Crude and Brent) moving more like equities, now off its post-QE3 announcement highs, but Brent still buoyed by geo-political /supply issues.

In the FX arena, USD still trading around 1.62 versus GBP following its QE3-induced weakening. The same is true of the relationship with the EUR with support around 1.31 after hitting 4-month highs. Watch the EUR for any positive regional crisis development which could push the pair even higher.

Should you require any other help on what’s moving the markets, speak to you friendly trader.

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

• UK                    Rightmove House Prices         Growth, but slower
• Aussie              New Vehicle Sales                   Improved growth
• See Live Macro calendar for all details

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

• Redstone agrees to buy Maxima Holdings
• Standard Life raises C$400m in debt issuance
• Falkland Oil and Gas finds gas at Falklands well
• BowLeven acquires stake in Kenya exploration block
• Ophir Energy confident on commercialising Equatorial Guinea gas finds
• Royal Dutch Shell says to delay Alaska drilling plans
• Smith and Nephew CFO Hennah to join Reckitt
• Bellzone Mining Gets Forecariah Iron Ore Mine Mining Permit
• Desire Petroleum Interim Results
• Nostra Terra Oil & Gas Second well spud at Verde