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

UK 100 Index called to open flat at 6190, still around the midpoint of its March holding pattern as investors continue to digest February’s 13% recovery rally. Whether we break higher or lower remains to be seen but Bulls are focused on potential for this to be merely an extended pause before another up-leg. The bears on the other hand are making a big deal about the struggle to break away from 6200, the trend of 9-month falling highs and the 200-day moving average. Watch levels: Bullish 6200, Bearish 6155.

The flat opening call comes as markets continue to come to terms with yesterday’s terrible scenes from the Belgian capital. Despite a positive close in Europe, markets demonstrating resilience to terror, it was a different story stateside and we have had a mixed and cautious Asian session overnight as Oil holds up around $41/barrel despite the USD Index extending its bounce ahead of US Crude inventory data this afternoon.

Japan’s Nikkei in the red as industrials and materials stocks lose ground on a stronger USD holding back commodities and a weaker Yen fails to inspire gains in exporters. BoJ commentary suggested inflation around zero for the time being. Much the same picture in Australia (with commodities and energy failing to assist) while China is outperforming on continued hopes of stimulus and reform to help the slowing economy avoid a hard landing.

US bourses were unable to follow Europe higher, with a muted session and low volumes hampering sentiment despite more solid US data (PMI Manufacturing edged up, Richmond Fed rebound). Uncertainty was exacerbated by mixed Fed commentary which could mean Janet Yellen has a mutiny on her hands with 4 of the 17 member FOMC committee now having publicly expressed disagreement with last week’s dovish policy update. Trump and Clinton made more progress in the US primaries.

In focus today we have a very quiet calendar data-wise limited to US New Home Sales seen rising and US Crude Oil Inventories of continued interest in the context of a global supply glut. Note potential for the gasoline stocks figure to be of more interest (another drawdown?) rather than Crude stocks themselves which continue to swell albeit at a slower pace.

On the speaker line-up, listen out for the ECB’s Weidmann (also head of Germany’s Bundesbank and not up for footing the bill for Eurozone crisis) who could well express his displeasure at Mario Draghi’s recent bazooka announcement. The Fed’s Bullard could also  muddy the waters further in terms of US monetary policy outlook.

Brent and US Light Crude are holding up remarkably well around $41/barrel, adding to hopes of continued upside potential following the recent rally which has seen the price of a barrel begin to trouble long-term resistance. Hopes growing of an OPEC production freeze, although we remain highly sceptical. US Crude Stocks data could well dictate sentiment this afternoon.

Gold has dropped to a 1-week low of $1231 overnight, despite yesterday’s shocking events in Belgium which would normally fuel demand for the safehaven. Declines can be attributed to the stronger USD on hawkish Fed commentary. Watch for support around $1225 mid-March lows.

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

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• Paddy Power Betfair Chief Operation Officer to Step Down
• Phoenix Group sets new long – term cash flow target
• Lloyd's of London 2015 pre – tax profit drops 30 pct
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• Wizz Air expects FY profit at top end of guidance
• BP chief economist sees continued oil demand growth this year
• William Hill sees lower 2016 operating profit
• Sports Direct lowers full – year earnings outlook
• Astrazeneca says Brilinta Socrates study misses main goal
• Asian shares slip as Brussels attacks make investors cautious before Easter
• Kingfisher beats forecasts as profit edges higher
• China says Belgian PM cancels scheduled trip after attacks
• Credit Suisse steps up cost cuts in tough markets
• London copper slips but signs of China housing recovery support
• National Grid –appoints new UK Executive Director
• Scramble for oil storage extends, suggesting excess has room to run