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

UK 100 called to open -10pts at 6685, back below the key breakout level 6700 which saw a meaningful test to the upside yesterday as far as 6725. Appetite for a push higher still lingering, but always a tricky one as we move into the week-end especially with geopolitics in play. Support still valid at 6647 with resistance at the 6725 highs.

European and US stocks closed higher, but only just, helped by strong US earnings reports (Apple, Caterpillar) and pleasing macro data (German IFO, US Durable Goods) but it was a rise in US Jobless claims and geopolitics which lead to the about turn from highs as tensions escalated yet again in Ukraine, seeing the price of Oil (Brent) and Gold rise.

Weakness slipped back in to futures pricing after the US close and prevailed overnight as online retail behemoth Amazon reported disappointing Q1 profits, and even if tech giant Microsoft managed a smaller than expected decline.

In Asia overnight, stocks are in the red again with China leading the declines hurt by losses for the Yuan and rising concerns about bad loans at Chinese banks. Data-wise, Japanese Inflation was in-line with the headline rate improving, ex-Food steady but core in-line losing a point. Tokyo inflation accelerated (sales tax hike impact) but less than expected. The stronger JPY hurt equities.

In other news, ratings agency Fitch revised Italy’s outlook to Stable and affirmed its BBB+ while peer S&P affirmed France’s AA rating and stable outlook. S&P also downgraded Russia to just above Junk (BBB-)due to capital outflows amid bad relations and sanctions with the West which risks growth prospects.

In focus today we have UK Retail Sales which are seen weak in March both including and ex-Autos, however the annual pace of growth is seen accelerating a touch. Ford reports Q1 earnings at midday. In the afternoon, US PMI Services is expected to edge up (remember manufacturing missed and edged down). To close the week, the Uni of Michigan Consumer Confidence is expected to nudge higher to a 10-month high.

Gold has recovered to $1290-1295 from its lows of <$1270 on geopolitical concerns, but failed to revisit the key $1300 mark which could remain a hurdle.

Oil: Brent has moved up $1 to $110.5/bl on Ukraine tensions, however, US Light Crude/WTI remains around its $101.7/bl range following the rise in US inventories on Wednesday..

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)

• JP         National CPI                            In-line
• JP         National CPI ex-Fresh Food     Worse, flat
• JP         National CPI Core                    In-line, deteriorated
• JP         All-Industry Activity                 Worse, deteriorated

See Live Macro calendar for full details

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

• Lonmin says no resolution achieved in strike relating to wages
• Harvey Nash well positioned for year ahead after strong growth
• Rotork says expectations for full year remain unchanged
• WPP thumps forecasts with strong Q1 organic growth
• Spectris Q1 reported sales down 1 pct
• Essar Energy independent committee to send views on EGFL offer to shareholders
• Tullow says second Mauritania well is dry hole
• Pearson says makes "solid" start to year, strong pound drags
• William Hill to close 109 UK betting shops, blames govt tax move