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

UK 100 called to open -10pts despite with Asian markets bouncing after their steep declines of last Friday thanks to China stating it will focus on growth, suggesting more stimulus on the horizon. This at the same time as the FT is running with an article suggesting Chinese buyers are deferring raw material cargos in a ‘hand-to-mouth’ market.

The weekend’s G8 meeting delivered little (what a waste) in terms of sorting the Eurozone debt crisis, with the only agreement being that growth and jobs are the top priority (new French socialist leader Hollande influencing the gang already?)and pressure being piled on Merkel to be less austere.

Risk appetite is mild overnight after the market declines of last week, seeing the safehaven Dollar strength pull back in favour of the Euro, and to the benefit of commodities including Gold and Oil. In terms of overnight macro data, UK house prices showed a sharp slowdown in May growth while Japanese industrial activity showed an acceleration in growth contraction in March.  Swiss consumer confidence showed a bigger rebound than expected.

This week’s focus moves to Wednesday’s Eurozone summit where Merkel is under pressure from the G8 summit to give a little on her austerity-over-growth view. Focus, however, more likely to be on a revisiting ideas previously dismissed by Germany for stemming the crisis and returning confidence to the stricken banking sector (notably Spain) given that the crisis looks to have entered a new era; boosting the ESM (European Stability Mechanism) as well as introduction of Eurobonds.

Today sees a thin calendar with just Eurozone construction output and Chicago Fed, as well as debt auctions from safe-haven Germany and the EFSF.  Elsewhere this week, Thursday’s sees essential updates on the health (or more likely sickness) of the manufacturing and services sectors around the world. These PMI surveys are unlikely to bring much good news in the currently bearish landscape and could result in changes in GDP expectations.

After its much hyped-but ultimately messy Nasdaq IPO on Friday afternoon (delayed opening, limited 10% pop, flat close), Facebook will open for its first full day’s trading this afternoon.

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

• UK                    Rightmove House Prices         Growth Slowed sharply
• Japan               All Industry Activity Index       Contraction accelerated
• Switzerland     SECO Consumer Confidence   Strong improvement
• See calendar for all details.

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

• Polymetal 2011 dividend at $0.20/ordinary share
• BTG swings to profit after strong antidote sales#
• Chariot Oil and Gas says Kabeljou well to spud during Q3
• British Land: Eurozone tensions hit market
• Sportingbet in talks with Spain on back-taxes
• SEGRO agrees sale of UK regional assets for £205m
• Pursuit Dynamics says P&G will not pursue its tech
• Rolls Royce wins $136 mln Dolphin Energy contract
• Barr trading in line despite bad weather
• Man Group to acquire FRM Holdings
• bwin agrees to pay Spanish back–tax

Morning Press Selection:

• EU summit to raise pressure on Merkel – FT.com – Europe http://on.ft.com/K0xBBi
• China buyers defer raw material cargos – FT.com – Commodities http://on.ft.com/K0w8Lb
• G8 leaders urge Merkel to boost growth – FT.com – EU Economy http://on.ft.com/Kqk3Mw
• Fear drives Irish towards Yes vote – FT.com – Europe http://on.ft.com/KofxQX
• The only way to stop a eurozone bank run – FT.com – Columnists http://on.ft.com/K0q1GF
• Banking: Back to the wall – FT.com – Analysis http://on.ft.com/JY0gan
• Cluff launches new oil and gas venture – FT.com – Oil & Gas http://on.ft.com/KTcJgZ