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

UK 100 Index called to open -30pts at 7340, yesterday’s late bounce having evaporated overnight and 4-day rising support breached. Yesterday’s sell-off prevented any headway towards mid-month record highs but 7330 overnight lows correspond with 3-week intersecting support. A meaningful break above 7350 is needed to rekindle bullishness. Bears require a breach of 7330 for a drop back to November rising support at 7300. Watch levels: Bullish 7350, Bearish 7330.

Calls for a negative open come after a down session in Asia overnight at odds with a positive US finish, the latter benefiting from upward GDP revisions. Market weakness may be explained by an element of risk-off into the week-, month- and quarter-end following one of the best starts to the year since 2013, and despite political risk aplenty, the most recent being in South Africa. Reassuring China PMI prints (employment best in 5 years) are being largely ignored.

Japan’s Nikkei is underperforming in spite of helpful Yen weakness following softer inflation as Oil prices come off their highs to dent the sector Energy rally. This and a pullback in metals prices is also weighing on Australia’s ASX, despite positive PMI numbers from China, while financials smart from tighter mortgage-lending criteria.

US equity markets closed higher on Thursday as stronger than expected GDP data led a market rally that saw the tech-focused Nasdaq posted a fresh all-time closing high. Financials were at the forefront of the equities rally, with Goldman Sachs contributing the most gains to the Dow Jones, while the sector led risers on the S&P500 as the blue chip index closed 0.3% higher.

Crude Oil, having rallied upon reports that OPEC will meet to discuss an extension to production cuts, retreated overnight as the US dollar continues its rebound from 4-month lows. All eyes will be on this evening’s Baker Hughes Rig Count for any further insight into the state of US crude oil production as the level of global supply remains firmly in focus for investors.

Gold has continued its retracement from Monday’s highs as the US dollar continues resurgence from 4-month lows. The price of the non-yielding safe haven asset has subsequently fallen as its price becomes comparatively higher, although with the greenback rally pausing for breath, the precious metal has bounces from $1241 lows. Investors will now be keenly eyeing 8-month falling highs resistance at $1251.

In focus today is the third and final reading for UK Q4 GDP, expected to be confirmed at 0.7% QoQ (slightly faster than Q2 and Q3) and unchanged at 2.0% YoY for a third straight quarter. Growth in the key services component (~80% of GDP) will also be eyed for any deviation from Jan’s solid growth.

While German Unemployment is forecast largely unchanged, Eurozone CPI is expected to show both headline and core having eased in March, from 2.0% YoY to 1.8% and from 0.9% YoY to 0.8%, respectively. German CPI surprised to the downside, so EZ figures could well do the same.

Afternoon data comprises US Personal Income & Spending, forecast unchanged in February while Real Personal Spending rebounds and inflation indicators give us the latest on pressures that might influence the Fed. The Chicago PMI may have ticked back like Dallas on Tues, at odds with Richmond on Weds and peer jumps in recent weeks.

US Consumer Confidence is seen confirmed back up around recent highs while the Baker Hughes Rig Count will provide the latest evidence as to whether US oil production continues to rise in the face of OPEC-led cuts.

Speakers on the roster include the ECB’s Coure at a 10am presentation at the Brussels-based economic think-tank Bruegel, followed by discussion and Q&A. Colleague Angeloni partakes in a 10.50am panel discussion "Banking Union: assessments & perspectives" at a "Europe: risks & opportunities" conference in Bologna.

To close the week for a busy Fed we have Bullard (non-voter, dove; 2.30pm) and Kashkari (voter, dove, 3pm). The text for Bank of England Haldane’s speech at the San Francisco Fed will be released at 10pm.

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

• Mail delivery firm DX Group in talks to buy John Menzies' unit
• Apple sends warning to banks with Australian mobile payments decision
• UK house prices fall for first time since June 2015 – Nationwide
• UK sells Bradford & Bingley loans to Prudential, Blackstone for $15bn
• Inmarsat selected by AT&T as team member for Firstnet network
• Britain's Ofcom plans to cut some BT wholesale broadband prices
• Shawbrook says Marlin Bidco offers to buyout company at 330p/shr
• Speedy Hire sees FY pre – tax profit to be in line with board's expectations
• Copper eyes second quarterly gain as supplies dwindle
• Oil dips after 3 – day rally, but support seen above $50 per barrel
• Gold down on dollar strength, political risks lend support