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

  UK 100 called to open -5pts at 6860 after recovering from another sell-off, but again failing to regain the highs of the prior day. This could be a sign of flagging momentum and traders taking a breather after recent gains, supported by US markets finishing pretty much unchanged even if the DJIA did manage another record close. The UK Index ’s 2-week 6795/6880 range is unbroken.

 Note the World Bank cutting its 2014 global growth forecast to 2.8% from January’s 3.2%, which probably dented overnight sentiment, with downward revisions for advanced economies (+1.9% vs +2.2%; but ‘gathering momentum) and developing economies (4.8% v 5.3%; China 7.6% v 7.7%). Note the US cut to 2.1% from 2.8%, Japan cut to 1.3% from 1.4% but the Eurozone maintained at 1.1%.

 US markets closed almost unchanged with the DJIA and Nasdaq just positive the S&P500 just the other side of breakeven although all continue to trade near all-time highs. Data was thin but all positive, improved and better than expectations (Small Business Optimism, Wholesale Sales & inventories, Job Openings).

 Asian equities mostly lower but the Nikkei is bucking the trend despite worse BSI Large Industry data and a stronger JPY on the back of better than expected Domestic Corporate Goods Price Inflation. Note the Hang Seng and ASX in the red due to a lack of fresh impetus from key market China and improved Aussie Consumer Confidence offering little help, remaining firmly below 100 for a third straight month.

 In Europe, German Finance Minister Scheuble argued that monetary policy cannot solve underlying problems in European debt crisis, but that ECB stance was appropriate due to low inflation, while the ECB’s Meakuch said there is room for the ECB to lower rates further and that more would be done (QE a possibility) if last week’s move not enough. Citigroup also said it expects S&P to upgrade the UK credit rating outlook to stable from negative on Friday.

 In focus today will be the UK Jobs data with the unemployment rate seen falling to a 5yr low of 6.7% with employment +270K in the last 3months. Jobless Claims are expected to have fallen by another 25K and helping the claims count rate down to 3.2%. As for wages and earnings, growth is expected to have cooled in the 3 months April, still well below inflation.

 In commodities, Gold has managed to get out of its recent $1250-1255 range to trade $1260-1265 getting to its highest level in almost two weeks after the recent decline to a four month low spurred physical purchases. Note Platinum and Palladium holdings in Exchange Traded Products (ETPs) expanding to records.

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