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

UK 100 called to open up 55 points lower this morning, following from losses seen in Asian markets overnight mainly due to downbeat China service sector data.

Overnight, Chinese non-manufacturing PMI declined in June (53.9 vs 54.3 previously. Down on last month but still above the key 50 level). Hong Kong retail sales also grew at a slower pace in May, helping to push the Hang Seng 386 points lower at 20,272. The Nikkei followed suit, falling 325 points at 14,068. Aussie retail sales also disappointed, coming in at -0.1% vs 0.3% expected.  Aussie new home sales were also lower than previous figures (1.6% vs 3.9%).

In the US, strong sales from Ford and GM led the indices higher to begin with although that reversed by the end of the session after traders seemed to be positioning themselves already for the non-farm payrolls figure due on Friday. Economists expect the US added 155,000 jobs in June and will be a key indicator in to how soon the Fed may turn start off the monetary stimulus taps, they say. The Dow Jones was down 43 points at 14,932 whilst the S&P was down a point at 1,614.

In focus today earnning’s wise will be trading statements from Tullow Oil and Carillion. Macro-data wise we have a busy day, key data includes; PMI services figures from Germany, Eurozone and the UK. Retail sales from the Eurozone at 10. ADP employment change from the US at 13:15 and initial jobless claims again from the US at 13:30.

UK 100 failing to stay above the psychological 6,300 level which now becomes resistance to the upside. Support remains to be seen at around the 6,220 and 6,191 levels. Eyes will be on macro-data due out today for a better idea of where the next move for the UK Index is.

In FX, we see the same recent story, with the USD seeing further gains against most of its major counterparts as continued speculation that the US Fed Reserve might taper the third phase of its quantitative easing (QE3) programme received a boost ahead of the ADP employment report slated for release later today. This jobs report is expected to show US companies adding more jobs last month (expectations are for a figure of 160k vs 135k previously). The £ and € both saw declines vs the $, currently trading at 1.51 and 1.29 respectively.

Gold trading relatively unchanged at around $1,245. US Light Crude trading at around one month highs of $101.4 whilst Brent Crude trades at around $104.8 a barrel.

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Overnight Macro Data: (Source: Reuters/DJ Newswires)

• China       Non-manufacturing PMI     IN-LINE
• Aussie      New Home Sales                 WORSE
• Aussie      Retail Sales                         WORSE

See Live Macro calendar for all details

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

• ITM Power says move into profit will be delayed
• Cineworld H1 revenue up 10.5 pct
• Management Consulting Group says outlook unchanged
• Tullow Oil reports Kenya exploration success
• Carillion wins 122 mln stg Network Rail contract
• UK competition watchdog seeks information into supply of government ICT services
• John Wood acquires Pyeroy group
• Emis appoints Chris Spencer chief exec on permanent basis
• Perform Group buys sports data company Opta
• Goals Soccer first half profits fall
• Shell finds oil at Gulf of Mexico drill
• Flybe names former easyJet executive as CEO
• Carillion first half performance in line
• Ophir upgrades resources after successful drill
• Domino’s says maintains strong momentum in the UK
• Spirent Comms sees Q2 revenue fall