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

UK 100 Index called to open -10pts at 7315 holding April rising support at 7300 which could help with a repeat of the overnight attempt to better Thursday’s highs of 7345, a break above which could open the door for another challenge on last week’s 3-week highs of 7400. Bulls are looking for a break above the 7325 highs of the last hour while Bears require a test of 7300 to trouble overnight lows. Watch levels: Bullish 7325, Bearish 7300.

Calls for a negative open come after a mixed return by Asian investors following the long Easter weekend, at odds with last night’s positive close on Wall Street. Geopolitical concerns may be off the boil and safe haven assets off their best, but they continue to simmer be it from a nuclear standpoint on the North Korean peninsula or politically in France and Turkey and across the Atlantic with the US Treasury secretary suggesting Healthcare bill problems will delay tax cuts.

Japan’s Nikkei is positive, although off its best levels as Yen weakness reverses. Australia’s ASX is in the red as commodity prices continue to give up ground to hamper Energy and Miners so watch London peers and UK Index dual listings.

Oil is flat and safe haven precious metals are also off their panic highs. Note also Iron ore dropping to 5-month lows and Copper erasing most of last week’s rebound as investors believe major restocking from Chinese stimulus may now be complete. Said price falls are clearly ignoring Chinese GDP picking up from recent 6.7% lows to hit 6.9% - fastest since Q3 2015 - albeit fuelled by credit and infrastructure investment and a relentlessly booming property market.

US equity markets remained open on Monday as Europe enjoyed an extended weekend, with major bourses closing sharply higher as company earnings reports continue to flood the airwaves. Financials contributed significant gains to both the Dow Jones and the S&P500 ahead of results from banking giants Bank of America and Goldman Sachs today, while the Tech-focused Nasdaq also enjoyed a healthy session, with all three indices +0.9% at the close.

Crude Oil prices have continued to fall back from Wednesday’s highs (Brent $56.65; US $53.75) as rising US production levels continue to err investors. With OPEC mouthpiece Saudi Arabia playing down talks of an extension to the group’s production cuts while warning that the market remains oversupplied, the global consumption barometer remains on the back foot in a tight falling channel.

Gold price, having traded at fresh 5-month highs during the extended Easter break for Europe, has since retraced gains as geopolitical tension eases, subsequently diminishing safe-haven demand into the new trading week. Although the precious metal has recovered from overnight lows at $1281 support, it has been unable to overcome falling highs resistance at $1284. Should geopolitics once again be a driver this week, investors will be looking for a return to last week's highs.

In focus today, as we return from the Easter weekend, will be continuation of US Q1 earnings, especially following last week’s consensus profits beats from JPMorgan, Citigroup and Wells Fargo,   so listen out for results side of midday from Bank of America and Goldman Sachs.

Data this afternoon includes March US Housing Starts and Permits with the former forecast to pull back from Feb’s 4-month high to equal Jan’s print while the latter bounces back to the midpoint of January’s upside surprise and February’s come-down to slightly exceed the 6-month average. US Industrial Production is seen continuing its rebound from Jan's flirt with contraction to trouble Dec’s near 2-year best although Manufacturing may go the other way while Capacity Use improves.

The Fed’s George speaks at the 26th Annual Hyman P. Minsky Conference which will address the implications of the new administration’s “America First” policies, focusing on the outlook for trade, taxation, fiscal, and financial regulation. Note Johnson & Johnson results may move the healthcare sector just before midday while IBM and Yahoo! are likely to move not only Tech but also global markets after the US close and overnight.

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

• Ashmore Group assets boosted by market gains, net inflows
• Flybe finance chief Philip de Klerk resigns to be Low & Bonar CFO
• UK's House of Fraser says trading improved in March
• Amec Foster wins contract with China's GPEC for shale oil fired boilers
• Santander to issue up to €2bn in preference shares
• Oil prices fall on expected climb in U.S. production
• Gold slips on firmer dollar, but N. Korea worries offer support