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

The UK 100 is set to open down 7pts at 6613pts as traders digest yesterday’s 72pt decline.

ARM Holdings (ARM.L) was dragged into the US tech stock sell-off, falling 2.4% as some market commentators suggested the recent flurry of tech IPOs, and weighty valuations was reminiscent of the dot-com crash in 2000. Burberry (BRBY.L) slid 2% after Berenberg Bank cut its rating on the stock from ‘buy’ to hold’. Barclays (BARC.L) and Lloyds Banking Group (LLOY.L) down 2.4% and 2.7% respectively also proved a drain on the UK 100 as profit takers swooped on gains registered in previous sessions.

The slump in US Markets continued, the NASDAQ registered its biggest three-day decline since 2011, down 48pts (1.16%), closely followed by the Dow Jones and S&P 500 (both down 1%) having recorded all-time record highs on Friday.

Heavyweight stocks such as Pfizer (PFE), American Express (AXP), Yahoo! (YHOO) and Apple (AAPL) ensured the Dow Jones was anchored in negative waters with losses of between 1.5% and 3%.

Asian markets and more specifically, the Shanghai Composite, could help European stocks as it notched a near 2% gain to cap a six-week high. With more disappointing manufacturing data due from the Chinese this week, the government is expected to introduce stabilising measures to boost the economy.

In commodities, gold climbed above the $1300 level once again as investors seek a safe haven following the sell off from equity markets. With the minutes from the Fed being released tomorrow, we could see gold trade within a tight range. Of note this morning Morgan Stanley wrote in a report that gold remains its least preferred metal, forecasting lower prices for the next four quarters. WTI rebounded from lows amid speculation that supplies will drop for a seventh week in the US, trading higher by 0.6% at $101.06. Brent meanwhile remained steady at the $106 handle.

In focus today we have UK Industrial and Manufacturing Production out at 9:30am, both expected to come in slightly lower than previous month. We also have Fed’s Plosser speaking at 19:45pm. Also of note, US mining giant Alcoa will be reporting after hours tonight.

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

• JP         Monetary Base Target            IN-LINE
• JP         Bankruptcies                           IN-LINE
• AU       Business Confidence               IN-LINE
• AU       Business Conditions                IN-LINE

See Live Macro calendar for all details

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

•             Unite Group fund value rises to 853.6 mln stg

•             Falkland Islands Holdings sees dividend at same level this yr

•             Premier Foods says rights issue gains 96 pct acceptances

•             Flying Brands says FD Stuart Dootson resigns

•             Dragon Oil cuts 2014 production forecast on drilling delays

•             Victrex expects adverse currency impact

•             Daisy sees FY revenue, adj EBITDA in line with market expectations

•             McColl’s Retail says trading in line with expectations