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

  UK 100 called to open +5ts at 6580, having made it back above the 6550 level we mentioned yesterday, after finding support at 6500. This after US markets all delivered respectable gains with an element of recovery from the sell-off late last week. Muted start on account of geopolitics and continued worries about China growth/fragility.

 Geopolitics still remains a lingering issue with the US White House issuing further warnings to Russia regarding the still tense and potentially deteriorating Ukraine situation and gulf in US-RU negotiations by leaders, but talk of more sanctions has been avoided.

 In Asia, while Japan’s Nikkei is positive overnight, Hong Kong’s Hang Seng is down the most in 4 weeks with s financials ditched on Chinese data suggesting weaker than expected credit growth, a doubling of activity in the worrying shadow-banking sector and significant PBOC intervention to drain/calm the financial system. In Australia, sentiment on the ASX dented slightly by Rio Tinto (RIO) results which showed a 6% quarterly drop in Iron-ore production due to adverse weather.

 In focus today we have UK inflation data which on its current dis-inflationary course and now below target will be of interest given expectations for another tick down in Consumer Prices (CPI) for both core and headline and the Retail Price Index (RPI) following suit. Producer Prices (PPI) for both inputs and outputs seen still under pressure. German Zew Surveys seen improving slightly.

 In the afternoon, the US Empire State Manufacturing Index is expected to register an improvement in April, although US CPI is seen muted in March, which will be of interest with Fed Chair Yellen speaking and all eyes still on the course for US monetary policy both in terms of QE wind-down and interest rate increases. With CPI sub-target (like in EZ and UK) rates rises still seem a long way off however, that’s what the fabled forward guidance we’ve come to love is for; to put us at ease!

 Results out this morning include Rio Tinto (RIO.L) with Q1 Iron ore shipments 66.7mt +16% YoY, Iron ore production 66.4mt +8%, guidance remains unchanged, expects to produce 295mt, Aluminium production 832kt, mined copper 156.5kt +17%, copper guidance remains unchanged. JD Sports (JD..L) FY Revenue +5.7% to £1.33bn, final dividend +3% to 22.65p, total dividend 27.1p, FY pretax profit £76.99m +27.3%, outdoor business delivered breakeven result.

SAB Miller (SAB.L) FY revenues +3% helped by volume in both beer and soft drinks. Volumes +2%, with lager +1% and soft drinks +5%. Debenhams (DEB.L) Pretax profit £85.2m -24.5% on the £112.8m a year ago; in line with guidance given December profit warning. Aggreko (AGK.L) expects to meet 2014 expectations after 5% rise in Q1 group revenue, sees strong growth in local business and power projects order intake was +150 megawatts. To return £200m to shareholders in June on top of dividend +10%.

GKN (GKN.L) Q1 profits +22% helped by global demand for commercial aircraft and light vehicles. Pretax profit £145m. CEO “Organic growth likely to be modest”. Michael Page (MPI.L) France and Germany returned to growth in Q1 helping profit +7% at £126.6m vs. £125.4m expected.

The UK 100 got as high as 6585 yesterday, after testing mid-March support at 6500. The gain back above 6550 is positive and could become support for a move back towards 6700, although we note potential for some resistance at the 6600.

 In commodities, Brent crude and West Texas Intermediate prices show no sign of easing given the lack of progress between Russia-Ukraine and fears of disruption to energy supplies to Western Europe. Brent trading at $109 up from $107, while WTI sits back at recent support $103.

Gold is down from a 3-week high of $1331 to test Friday’s support at $1315 as investors assessed an improving US economy (data, Fed outlook, USD index rebound) and despite the still tense situation in Ukraine.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – all part of the service.

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

• UK        BRC Like-for-like Sales                        Worse, deteriorated
• CN       Money Supply                          Worse, slowed
• CN       New Loans                              Better, but doubled!
• CN       Foreign Reserves                    Better, improved
• CN       Aggregate Financing               Better, but doubled!
• JP         Tokyo Condominium sales      Slowed, but less so

See Live Macro calendar for all details

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

• Rio Tinto 1st quarter iron ore shipments drop 8 pct vs 4th quarter
• Rio Tinto says Q1 global iron ore shipments (100% basis) 66.7 mt, up 16 pct from year ago
• Diageo announces tender offer for up to 26 pct of India's United Spirits
• Blinkx partners with Grindmedia for sports highlights
• JD Sports full-year profit up 27 percent
• SABMiller reports higher full-year revenue
• Debenhams first half profit falls by a quarter
• Capita to acquire software firm Amtsybex Group for 82 mln stg
• Michael Page says growth returns to France and Germany
• GKN Q1 profit rises 22 pct
• Micro Focus Intl says will separate CEO, chairman roles
• Punch Taverns says continues negotiations with stakeholders on restructuring
• Aggreko says 2014 on track as rental business delivers growth
• Hochschild Mining on track to hit 2014 production target