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

UK 100 called to open flat at 6796, consolidating itself in a downwards channel as markets digest some cause for concern out of the US ahead of tomorrow’s Non-Farm Payrolls. An impressive bounce off support at 6672 on Wednesday hit resistance at falling highs from 24 march with the index following the negative gradient of the upper tram line this morning. Bulls will be encouraged by a break above 6860 today while bears looking for a fall off below support at 6758.

The flat open comes amid equally flat news from the global markets. Disappointing data overnight from the US suggested a bearish outlook for tomorrow’s US Non-Farm Payrolls causing some confusion surrounding economic recovery in the world’s #1 economy. Closer to home, Greece handed in a 26-page list of reform measures on Wednesday addressing taxation, intended privatisations worth €1.5 billion in 2015, public sector policy, the labour market and healthcare to name but a few. Said proposals “…are similar to Friday's initial effort and fail to address several issues that bailout monitors have insisted on, including an overhaul of the Greek pension system and further labour market liberalisation,” Said the FT. Frustrated Eurozone officials echoed the newspaper in suggesting the new list is far from being a sufficient basis for a deal.

US stocks closed in negative territory on Wednesday after ADP employment change fell short of market estimates at 189K (missing consensus of 225K), indicating a Q1 slowdown. This does not bode well for Friday’s payrolls figure, suggesting as it does that economic recovery is not happening at quite the rate people were hoping for – most notably the US Fed who are absolutely itching to raise interest rates this year.

Asian Bourses did well  overnight, helped by a recovery in commodities which counteracted weak cues from Wall St. In Japan, companies are apprehensive about the staying power of a weak Yen. Japanese industrial data showed flat performance despite increased exports which indicated that business sentiment is not keeping up with the soft economic recovery there. A BoJ survey also revealed that large businesses plan to spend 1.2% less on capital investment this fiscal year compared with their fiscal 2014 plans. The market had expected a slight increase.

China pulled down its growth target to 7% as expectations that the US Fed will raise their interest rates threaten to dampen stocks. In Australia, meanwhile, the adjusted merchandise trade deficit came in better than expected but, disappointingly, having increased from the last print. This has in turn increased the odds of a RBA interest rate cut next week.

In focus today we have UK Construction PMI this morning followed by an afternoon of US data including Jobless/Continuing Claims, Trade Balance, Factory Orders and the Baker Hughes Rig Count.

US Light ($49) and Brent ($56) staged impressive recoveries overnight but have eased off this morning on uncertainty surrounding the Iran nuclear talks. Negotiators in Switzerland had missed a deadline to agree a final deal over Tehran’s nuclear program and continued to tread water into Thursday. An Amicable outcome could see prices contract as much as $5 a barrel as Iranian oil floods the market. US oil prices are also under pressure from inventory data showing a 4.8M barrel increase in stockpiles.

Gold ($1205) has made it back above $1200 overnight helped by a weakening US dollar but, like oil, has flattened off this morning as investors await tomorrow’s US jobs data. The yellow metal is back in an uptrend, skipping between two sets of tram lines just as it did on the way down. Possibility for further gains today as focus returns to the Iran talks in Geneva?

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

• Aussie                           Trade Balance                    Beat, Deficit Increased

See Live Macro Calendar for full data line-up, incl. consensus expectations

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

• M&S posts best non – food sales outcome in four years
• Ferrexpo Q1 pellet production rises 2.5%
• Booker 52-week like-for-like sales, excluding Makro, up 2.3%
• BTG nudges up 2014/15 revenue guidance
• Electrocomponents sees year profit in line with expectations
• Premier Oil discovers oil and gas in Falkland Islands
• Tate & Lyle to finalise plan for Splenda this month
• Booker says Rose to step down as chairman at AGM
• Avocet Mining wins mining licence for TRI-K project in north east Guinea
• Diageo snaps up rest of United National Breweries beer business
• Alliance Trust rejects Elliott claims on costs, performance
• Playtech acquires 91% in trading platform provider TradeFX
• Londonmetric secures £400m revolving credit facility