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

UK 100 Index called to open +30pts at 7265, making a bullish test of 2-3 week falling highs resistance. Should we get a proper breakout, upside to 7300 and then 7350. Bulls likely want to see a bettering of Tuesday’s 7265 highs; bears would welcome any signs of a retreat back below 7250, even if 2-week rising support lurks just below. Watch levels: Bullish 7265, Bearish 7250.

A positive opening call comes in spite of a mixed US close and Asian bourses following suit overnight after disappointing China Caixin PMI Services data (11-month low).  Fresh GBP weakness derived from USD strength is, however, helping UK blue-chips following last night’s hawkish Fed statement (positive for Banks) and what some view as a better performance by Macron versus Le Pen in a televised French Presidential debate reducing political risk. Progress with the US Healthcare bill also helps.

The Fed’s update suggested it sees no reason to shy away from more rate hikes this year, viewing soft Q1 data as transitory and thus leaving the door open for a June hike. The probability of a hike next month jumped to 90% helping the Dollar index back up above 99 to weigh  which is helpful for respective national bourses via reciprocal weakness in the Yen, GBP and EUR.

Asian bourses mixed, with Japan’s Nikkei outperforming thanks to Yen weakness in response to that Fed inspired USD strength. On the flip side, that stronger USD has served to extend the reversal in the dollar denominated metals space (especially Iron ore and Copper) so the Australian ASX underperforms. Another reason for weakness is the prospect of Australia’s biggest market China taming financial risks by reducing liquidity, slowing growth.

US bourses were mostly lower at the close although they were well off their worst levels helped by financials benefiting most from a hawkish Fed statement and Oil paring losses to help the key Energy space. Note Apple retraced much of its results inspired share price drop, so it’ll be interesting to see whether Facebook can do the same as its shares fell 2.5% after hours as advertising limits overshadowed better than expected revenues and earnings.

Crude Oil off its lows, although still depressed, hanging around 2017 lows on production glut concerns. Gold suffers from fresh USD strength as the Fed suggests looking through a recent soft data patch. The precious metal’s breach of $1240 puts paid to rising support going back to December and could open the door to a move back towards $1200.

In focus today will be digestion of last night’s hawkish Fed policy statement  (markets pricing in June hike) and what turned out to be a very entertaining live French Presidential debate between Marine Le Pen and Emmanuel Macron as we enter home straight before Sunday’s second round run-off.

Data-wise, European PMI Services will dominate the first hour of trading with improvements expected in Spain, Italy, France and the Eurozone, but pullbacks for Germany and the UK, although all are sure to remain well above the 50 threshold between growth and contraction.

UK Consumer Borrowing and Mortgage Approvals may have eased for a third straight month in March and while Eurozone Retail Sales growth probably slowed up, the annual pace likely picked up above 2% for the first time since November.

This afternoon, US Non-Farm Productivity is seen flat in Q1 although Labour costs may have risen faster than the 2% the Fed is likely looking for in terms of inflationary pressure. US Factory Orders growth is forecast slowing for a second month in a row.

Note ECB President Draghi speaks after the European close while his colleagues Lautenschläger and Chief Economist Praet do so later this morning.

Stateside results today include Costco, Chesapeake Energy, Viacom, L Brands, Kellogg, Marathon Oil and Motorola Solutions.

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

•         Shell announces qtrly dividend of $0.47 per share
•         Shell reports sharp rise in Q1 profits, beating forecasts
•         Ladbrokes Coral net revenue rises, says trading in – line with expectations
•         Randgold's first – quarter profit up 33 percent
•         Randgold first – quarter output, profit hit by strikes
•         HSBC's shares rise after Q1 profits beat forecasts
•         HSBC CFO rules out fresh buybacks in short term
•         Amec Foster Wheeler Signs Extension to BP Master Service Agreement
•         Imagination Tech starts dispute process with Apple
•         Imagination Technologies to sell MIPS and Ensigma units
•         Insurer RSA Q1 premiums up 14 pct, operating profit strong
•         Next cuts top end of profit guidance in 'challenging' environment
•         Glencore raises 2017 marketing EBIT guidance
•         G4S first – quarter revenue rises 8.9 pct
•         UK supermarket Morrisons' sales rise for sixth straight quarter
•         Convatec Group posts q1 group revenue of 403.1 mln stg
•         Esure Q1 premiums up 24 pct, on track for top end of 2017 guidance
•         Rio Tinto watching for revival in China iron ore mining
•         Kerry Group reaffirms FY earnings growth forecast
•         Credit Suisse says tax probe linked to “historical” business
•         Gold up, but holds near 6 – week low on Fed rate hike worries
•         London copper near 2 – week low on U.S. rate rise expectations
• Oil eases, near weakest since late March on small U.S. stocks decline