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

UK 100 called to open +30pts at 6867, shaking off Friday’s disappointing US Non-Farm Payrolls data and following Wall St’s cues to post gains in futures trading over the holiday weekend. The index has traded its way out of a late March falling channel, finding horizontal support around 6800 but with potential resistance around 6870. Watch levels: Bullish 6950, Bearish 6700.

The positive open comes after US stocks overcame early weakness on Monday to finish with strong gains as a rise in crude oil prices helped drive energy stocks and gave a boost to the market as a whole. Data wise, US Non-Manufacturing Composite in March fell to 56.5 from 56.9 previously whilst New Orders rose to 57.8 and Employment gained to 56.6. In Europe, Greek FM Varoufakis said he wants the negotiations with Greece's official lenders to reach a preliminary deal at the April 24 meeting of Eurozone Finance Ministers.

The US Fed’s Atlanta President Lockhart said that, while recent economic weakness probably won’t persist, he favours a delay in a rate increase to the latter part of the year (at least beyond the next two meetings).

Asian Bourses went higher overnight, encouraged by the gains in the US while in Australia the RBA left the benchmark interest rate unchanged at 2.25%, concerned that a further cut would fuel the current housing bubble in an economy that is suffering from low commodity prices – commodities weigh heavily in Australia, and the country is currently undergoing a difficult transition away from its dependence on the sector.  

In focus today we have a raft of European PMI data throughout the morning including that of Spain, Italy, France, Germany, the Eurozone and the UK. Bank of England meeting minutes will be released at 0930, followed by Eurozone PPI at 1000.

US Light ($51) and Brent ($58) are off their holiday highs having posted gains over the weekend as Saudi Arabia, the world’s largest oil producer, announced it would raise prices to customers in Asia indicating an increase in demand there. Traders were worried about a flood of Iranian oil onto the market suppressing prices further but this has so far failed to challenge confidence that supply and demand are entering a phase of re-balance.

Gold ($1214) made a bounce upwards on April 5^th, leaving a $12 gap in its wake. The yellow metal is trading flat this morning having begun its retracement, leaving much of the gap yet to be filled. Still holding above $1200 as uncertainty and a slightly weaker USD help bolster safe haven demand in the commodity.

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

• Aussie                           Cash Rate Target              Maintained @ 2.25%

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

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

• Flybe sees FY results in line with market expectations
• Shire agrees regulatory path for ADHD drug for adults