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

UK 100 called to open +25pts at 6705, rebounding from the negative close in Europe and US after disappointing results weighed on the broader market with Amazon fuelling another Tech sell-off and Ford and  Visa undoing some of the general optimism of late from peers and US Consumer Confidence (Uni of Michigan) being revised higher was unable to offset softer than expected US Services PMI.

 Rising tensions in the Ukraine with the detention of international observers by the pro-Russian separatists has made matters worse with the White House saying the US, G7 and EU are prepared (as early as today) to impose new sanctions on Russia in response to the latest actions which conclude that the Kremlin isn’t abiding by its recent agreement in Geneva.

 It has been a shaky start for Asia overnight, with Japan’s Nikkei in the red held back by US corporate earnings and outlook and in response to the threat of more sanctions on Russia as well as some reticence ahead of some big economic data including European CPI, US GDP, Fed Policy review and US Non-Farm Payrolls.

 Australia breakeven on its return from a Holiday and regional sentiment not too perturbed by the IMF updating on growth expectations with China’s slow credit growth and reliance on  investment cutting growth to +7.5% in 2014 and +7.3% in 2015 and Japan’s growth to dip from +1.4% in 2014 +1.0% in 2015.

 Data overnight comprised China Industrial Profits growth accelerating in March, while UK Hometrack Housing Survey was stable in April (accelerated YoY), Japanese Retail Trade beat expectations (8^th straight gain in a row, and fastest since 1997) but German Import Prices were weaker than expected which will add fuel to the fire of deflationary fears in Europe.  After Fitch revised Italy’s outlook to Stable (BBB+) on Friday it has also upgraded Spain’s rating to BB+ Stable.

 In focus today we have a the UK Lloyds Business Barometer at 9.30am, then it’s all quiet until US Pending Home Sales at 3pm where  expectations are for growth to rebound from -0.8% to 1.0% and for the Dallas Fed Manufacturing Index at 3.30pm to improve from 4.9 to 6.

 The UK flagship index persists in its attempt to conquer the key breakout level 6700 after a brief foray higher on Thursday which faltered at 6725. Appetite for a push higher is still very much in force, and the new week may offer more potential. Support still valid around 6650, and resistance at Thursday’s 6725 highs.

 Gold has made it back above the $1300 mark after safehavens were sought into the week-end amid the equity sell-off and tensions escalating in Ukraine and as investors prepare for a raft of corporate earnings and economic data. Potential now for this level to become supportive amid a recovery to $1330.

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

• CN       Industrial Profits                     Accelerated
• UK        Hometrack Housing                Stable MoM, Accelerated annually
• JP         Large Retailers Sales              Better, accelerated
• JP         Retail Trade                            In-line, accelerated

See Live Macro calendar for full details

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

• Pfizer confirms desire to buy AstraZeneca
• Devro expects volumes and prices in 2014 to be flat
• Chief executive of UK's BG Group resigns with immediate effect
• Fidessa Group sees modest constant currency growth in 2014
• GW Pharmaceuticals says FDA fast-tracks Sativex cancer drug
• Premier Oil says oil discovered at Kuda Laut, Indonesia
• Balfour Beatty reaches financial close for Canada hospital project