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

UK 100 called to open +10pts at 6966, settling into another sideways channel with support around 6930 after retracing yesterday’s gains amid waning excitement surrounding the Shell/BG deal. Did RDS pay a bit too much? Its shares are bottom of the UK Index this morning as the index struggles to maintain a presence above key resistance around 6970. Watch levels: Bullish 7000, Bearish 6855.

The lukewarm open comes as worrying macro issues vie with Oil & Gas M&A vibes for investor sentiment.  Mounting concerns about Greece’s relationship with ‘new best mate’ Russia and a default on its debt repayments together with a BCC report showing the pace of UK economic expansion slowing in Q1 2015 have put pressure on the UK Index as have the strongly contrasting share price moves of Royal Dutch Shell and BG Group following yesterday’s merger announcement.

US stocks were range bound Wednesday as investors awaited the FOMC minutes which, when they came out, indicated a schism between US Fed doves and hawks, lowering the likelihood of an interest rate hike in June this year on concerns about the USD strength and low oil prices. Markets reacted positively to close higher on the day. The Fed are keen to base any decision on data and data alone and continue to stress that no one factor will make the case for a rate rise – in particular the disappointing NFP of last week to which Fed member Dudley said they weren’t paying much attention.

Asian Bourses were mixed overnight with the major mover being Hong Kong’s Hang Seng index. Chinese investors bought heavily, pushing the benchmark up 6.3% before profit-taking ended the party. Mainland Chinese investors are piling into Hong Kong, which is seen as a bargain compared to already overbought Chinese markets. The Shanghai Composite was down overnight due to the exodus while Japan's Nikkei rose 0.7%, tapping fresh 15-year highs as the Yen weakened against the USD.

In focus today we have UK trade balance followed by the BoE rate announcement, expected to remain at 0.5%. This afternoon US Jobless Claims round off a fairly quiet day on the data front.

US Light Crude ($51) is flat this morning after the selloff yesterday as traders digest the massive surge in US oil stocks – larger than expected and the biggest weekly gain since March 2001. It’s a similar story for Brent ($56), posting a weak rebound overnight to trade flat this morning.

Gold ($1214) has now filled the gap and moved even lower, dropping below $1200 and heading for support at $1188 or $1180 on low demand as investors still preferred equities, believing a US Fed rate hike unlikely until at least later in the year.

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

• Germany                             Industrial Production MoM         Beat, Improved
• Germany                             Industrial Production YoY             Missed, Deteriorated

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

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

• UK Mail sees FY "performance" at lower end of expectations
• Braemar Shipping Services says chairman to retire
• Lightwaverf says Apple to help co implement Homekit
• Russia's Eurasia Drilling says 2014 net income down 2.5% YoY
• Cranswick sees FY results in line with expectations
• Rockhopper, Falklands agree tax settlement from Premier Oil farm-out
• Victrex says H1 revenue up 9%
• PZ Cussons says FY outlook remains in line with expectations
• APR Energy ceases ops in Yemen due to escalating conflict
• Phoenix IT sees profit within market expectations
• Shire's Alagille syndrome drug does not meet study goal
• Gulf Keystone reports steep 2014 loss as owed $100m for crude exports