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

UK 100 called to open -20pts at 7080 having engaged in some volatile activity Monday afternoon which saw the index trade in a 100pt range to close above 7100. Still very much sideways since 10 April with any time spent above the now bugbear level 7100 proving brief at best before profit takers step in  to halt the advance. Updated watch levels: Bullish 7150, Bearish 7000

The negative open, which could just as easily been a positive or flat open given yesterday afternoon’s volatility, comes as macro data continues to disappoint this week with the UK’s  business optimism print missing consensus by some margin and US PMI deteriorating on last year. UK 100 may tread water this morning as we await the UK GDP data with muted expectations.

US bourses reneged on their gains yesterday as a pullback in the Biotechnology sector weighed on the larger market and the aforementioned PMI print, which came in below estimates in April. Dallas Fed manufacturing activity was also weak. On the upside, Apple reported a 33% jump in quarterly profits – revenue of $58bn and EPS of $2.33 /share – after  market close as sales of the new iphone rocketed and considerable growth was seen in the Chinese market.

Asian markets are waiting in the wings this morning after digesting Wall St’s losses of yesterday as investors look ahead to some major Asian firms’ earnings reports, including those of Honda, Samsung, Sony and LG. Said reports are to be seen together as an indicator of economic health in the region. The US FOMC meeting due to be held tomorrow where a decision on a US interest rate hike will be made is also being anticipated. Japan’s Nikkei outperformed, climbing 0.5%, while other markets including Hong Kong’s Hang Seng index drifted lower.

In focus today we have the UK GDP data which is forecast to come in lower than last year, ramming home the reality of slowing UK growth as we head towards next week’s general election. This afternoon we have US consumer confidence forecast to increase slightly in April.

US Light crude ($58) trading sideways since 16 April with tried and tested support around $56 and currently not far off that level having pulled back early Tuesday amid expectations of further US stockpile growth to be reported later today by the American Petroleum Institute. Brent ($64), meanwhile, continues to test support at rising lows since 4 April, also at the lower bound of its own rising trading channel as the oversupply issue continues to weigh.

Gold ($1200) has come back again to trade North of $1200 after the US Dollar Index posted losses yesterday to test 3-week lows of 96.63 following the poor macro data reported both yesterday and last Friday. All eyes will be on the FOMC meeting tomorrow even though the outlook is largely dovish.

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

• Aussie                   Leading Index                                    Improved
• Japan                    Small Business Confidence          Missed, Deteriorated

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

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

• BP profits soar on strong refining
• Whitbread CEO Harrison to leave as profits surge
• Alliance and Elliott reach compromise on eve of AGM
• UK support services firm Kier to acquire Mouchel for £265mn
• Faroe Petroleum announce spudding of Bister exploration well
• Rexam says overall global beverage can volumes up 5%
• Henderson assets rise to £89.4bn on record inflows
• Dunelm Group appoints Andy Harrison as chairman
• Avocet Mining posts FY pretax loss $140.1mn
• Industrial landlord Segro says rents are improving in UK
• Aquarius Platinum says Q1 revenue down 2%
• St James's Place sees Q1 net inflows of £1.3bn, up 9%
• Kenmare Resources says "minimal disruption" to Moma mine operations