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

UK 100 called to open -50pts at 6275, but with the overnight sell-off finding support at 6250. Staying above the key 6220 ceiling of the March 6-week sideways channel will warm the hearts of any bulls hoping for an end-of week rebound towards late Weds’ 6340 highs. The bears are concentrating on the trend of falling lows from Wed’s night. Watch levels: Bullish 6295, Bearish 6255.

The negative opening call comes after a late US sell-off kept risk appetite in check during overnight Asian trading. The turnaround comes after slower than expected US GDP (4th straight quarter of slowing growth, lowest growth in 8 quarters) and activist investor Carl Icahn sent markets into a tailspin after saying he is worried about China and sold all his shares in Apple.

Japan’s Nikkei closed today but we note more Yen strength after a USD sell-off following a soft US GDP print that could keep the Fed from hiking interest rates. It also adds to pre-existing weakness from yesterday’s BoJ decision not to boost stimulus. Monday could be tough for the Nikkei.
Australia’s ASX posting gains thanks to a buoyant mining sector as commodities prices benefit from a weak USD tailwind. Stocks in China suffering from a higher FX fix n the renminbi as the PBOC reacts to  dollar weakness. This morning note worse than expected German retail Sales but better French GDP (accelerated to fastest growth in 11 quarters).

US Bourses were led lower yesterday by Apple shares after activist investor Carl Icahn liquidated his entire holding in the company. GDP growth coming in softer than expected (0.5% vs. 0.7% consensus) also weighed on sentiment stateside. Note the governor of the Bank of England, Mark Carney, said that the UK economy also seems to be slowing a little, although that’s due to Brexit stuff rather than a read across from the US.

Corporate results saw some positive earnings from Ford Motor Co. and UPS with the parcel courier and economic barometer posting solid Q1 results while the car giant saw profits and EPS double those for Q1 2015 – a record for the company.

Dollar weakness is still a boon for commodities with Gold outperforming amid choppy equity market action. The yellow metal is currently consolidating having made fresh highs of $1281 overnight and is testing the trend of steep rising lows from yesterday. A confirmed break below rising support could see further correction, although note that it’s Friday with the oft observed ‘risk-off into the weekend’ potentially keeping gold in the green.

In focus today – Eurozone Inflation expected to show improvement to breakeven in headline CPI but a slowing in Core. The GDP reading for the region is seen inching up in the quarter but slowing slightly over the year. Comments from the Fed’s Kaplan could move the USD mid-morning as could result from oil Major Exxon-Mobil before the US open.

In the afternoon, after that poor US GDP print, watch out for US Personal Income and Spending forecast to have improved in March (didn’t help with Q1 GDP did it), although the inflation markers may garner more focus. Keep an eye out also on Chicago PMI, Michigan Consumer sentiment as well as the Baker Hughes Rig Count given the rally in oil.

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

• Pets at Home acuires two veterinary referral centres
• Great Portland exchanges contracts to sell an office property
• Premier Oil completes acquisition of E.ON North Sea assets
• Gulf Keystone reaches standstill deal notes, bonds holders committee
• Pearson first quarter sales fall on U.S. contract losses
• Ultra Electronics says FY expectations remain unchanged
• Rotork buys gearbox – for – valves maker Mastergear
• Laird says performance for Q1 was in line with expectations
• SABMiller says AB InBev to sell some of SAB’s asset for EU nod
• Drugmaker AstraZeneca’s earnings fall, hit by patent expiries
• RBS says expects 2016 restructuring costs to top 1 billion stg
• UK regulator says pharmacy sales could resolve Sainsbury’s/Celesio deal
• IAG beats Q1 forecasts, slows future capacity plans
• RBS losses widen after income takes a tumble