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

  UK 100 called to open -20pts at 6775, after US stocks closed lower (S&P 500 at 1-week lows) on a lack of data to maintain the recent drive higher, a weaker earnings report from Twitter (shares -18%) and a worrying escalation in tensions surrounding the Ukraine failing to be shrugged off with the risk of civil war increasing and NATO’s top brass considering a permanent presence by the alliance.

 After a weak of no lack of want for trying, helped by some good US and European data, investors are struggling for reasons to remain bullish with many markets already around highs, plenty of headwinds, the OECD cutting global growth expectations and a disappointing night for macro-economic readings.

 Overnight data included Chinese HSBC PMI Services for April which deteriorated and adds weight to concerns the country will miss its 7.5% GDP growth forecast. Despite the poor manufacturing figure on Monday, the composite number actually improved but remains contractionary and of little comfort. UK Shop Prices also fell more than expected in April.

 Japan also failed to inspire with April’s PMI Services and Composite both dropping sharply from growth to contraction, while Aussie Construction remains under pressure and Retail Sales downunder for March missed expectations. Back in Europe, note March German Factory orders (the engine of the region?) coming in much weaker than consensus, a surprise negative print in fact.

 In Asia-Pacific overnight, indices following the US lead, with red across the board following poor data and tech jitters. Japan’s Nikkei leading the declines after a holiday with a stronger JPY getting in the way following BoJ Minutes showing agreement to continue QE until 2% inflation but no hints of any fresh stimulus on its way.

 In focus today, with an absence of tier 1 data will be Fed Chair Yellen’s testimony to the Joint Economic Committee which comes hot on the heels of the very strong headline Non-Farm Payrolls prints of last week. Close attention will be paid to any additional commentary on the ‘under-the-hood’ health of the labour market in the world’s #1 economy to allow markets to looking at the end of QE3 as an economic positive rather than a policy negative.

Results this morning from Sainsbury (SBRY) show FY profits +5.3% – its slowest in nearly a decade. Underlying pre-tax profits beat expectations but management expects conditions in food retail to remain challenging for the foreseeable future as customers remain cautious.

Legal & General (LGEN) Q1 net cash +21% and operational cash +6% on demand for its pension products.  Experian (EXPN) FY earnings +8% helped by acquisitions and margin expansion. Imperial Tobacco (IMT) revenues -5% and volumes -7.9% due to tightening regulation and planned inventory reductions in a number of markets.

In Europe, French bank Societe Generale (says net income slid in Q1 although operating income excluding revaluations of own financial liabilities rose. Peer Credit Agricole has delivered a rise in Q1 operating and net profits and Germany’s Commerzbank has swung to a Q1 profit although operating profit fell

On the corporate activity front, note Alibaba filing with the SEC for its much anticipated potentially mega-IPO which could raise up to $20bn and be valued well above $100bn. Pfizer also back on the wires with its charm-offensive towards for the acquisition of AstraZeneca (AZN).

In commodities, Gold has risen toward three-week highs of $1310-1315 as investors weighed tension in Ukraine against signs of an improving U.S. economy. US Light Crude back above $100/bl after an industry report showed crude stockpiles declined in the U.S. although Brent Crude back down around $107 recent lows despite poor economic data and Ukraine supply disruption fears.

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