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

UK 100 called to open +35pts at 6160, the bounce from April lows 6055 notching up another 60pts since Friday's European close to put paid to last week’s downtrend. The Bulls like the fact we have regained 6160 (above Thursday's highs and Wednesday’s lows) which could provide the platform for a test of 6200-6250 and trouble the 3-week downtrend from mid-April. Bears will be watching that same level for any signs of resumed downward pressure. Watch levels: Bullish 6180, Bearish 6140.

Calls for gains on the open come as most Asian bourses advance with Japan’s Nikkei benefiting from a weaker JPY.  Note China the exception after poor trade data (exports and imports down) while Australia's ASX is being buoyed by a helpful combination of 1) weaker Aussie dollar (strong USD; more Aussie rate cuts?), 2) higher oil prices linked to concerns about the impact of Canadian wildfires on supply from important Alberta oil sands, and, 3) poor China trade data leading to more stimulus from Beijing.

Japan’s weaker Yen comes courtesy of the USD Basket continuing to bounce from 15-month lows and make fresh May highs. This is in response not to Friday’s weak US Jobs report, rather strong US wage growth that could generate inflationary pressures that could spur a Fed rate hike. Nonetheless, chances of a June US rate rise ahead of a UK referendum on EU membership (Brexit) would appear slim, leaving markets with a still highly accommodative policy outlook for the near future. Poor China trade data surely just adds potency to this risk appetite cocktail.

US bourses closed positive on Friday, having ridden out a bit of volatility around the disappointing Jobs report. The odds of a June Fed rate hike are now as low as 8%, while Fed speakers continue to do their utmost to keep markets guessing. In particular, Dudley remains adamant that 2 hikes are still a reasonable expectation this year.

Crude oil prices are holding up in the mid-$40s as the Canadian wildfires continue to impact production in the world’s 3rd largest oil producing nation. We also saw Saudi oil minister Ali al-Naimi replaced over the weekend by a new guy, Khalid al-Falih (who also comes from state oil giant Saudi Aramco), which puts Deputy Crown Prince Mohammed bin Salman firmly in control of the country’s oil policy and makes a production freeze highly unlikely in the near future. Or ever, really..

Gold is back at 2-week rising support, weighed upon by a rebound in the USD. However, further upside for the Dollar looks set to be capped following last Friday’s jobs report. With that being on the whole rate hike negative and the fact it calls into question the strength of the US economic recovery, dollar-denominated safe havens could be set to benefit this week.

In focus today will be the fallout from what is largely been seen as a weak US Jobs report, pushing out US rate hike expectations. Thereafter we have Eurozone Sentix Investor Sentiment which may have improved slightly in May while US Labour Market Expectations in the afternoon could reignite debate about the pace of US economic recovery, unemployment and of course ….Fed monetary policy.  And if that doesn't, we are sure that Fed speakers Evans and Kashkari will do their best.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.

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

• Wood Group Wins Two Contracts in Iraq worth $140m
• G4S Statement Re Pre-Conference Update; says no further impairments in Q1
• Dignity First Quarter Revenue -5%; Reaffirms 2016 Expectations
• Oxford Instruments Appoints Alan Thomson Chairman Designate
• Genel Energy appoints Schofield as COO
• Opera abandons deal to buy SoloPower
• ITE says six – month headline pretax profit rise 8%
• Greggs 18 weeks to May 7 underlying sales +3.7 %; Reports Lower Sales Growth
• Avanti wins $29m contract with BT's EE