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

UK 100 called to down -51pts at 6587, after the US Markets were slammed last night on valuation concerns. A week ago today the Dow Jones and S&P 500 indices recorded all-time record high levels, with earnings season underway traders are cashing out in case these record valuations don’t stack up against the latest quarterly trading updates.

The UK 100 lacked direction closing at 6641pts, up just 6pts having swung between gains and losses at least eight times during the session.

Index leaders included Randgold Resources (RRS.L) up 1.45% and Fresnillo (FRES.L) up 1.75% on a firmer gold price as investors rotated out of equities and into the safe haven metal.

Building companies, both commercial and residential, cheered the Bank of England’s decision to leave the interest rate at 0.5%. Land Securities (LAND.L) topped the UK 100 Index with a gain of 2.85%, closely followed by Persimmon (PSN.L) up 1.67%, British Land (BLND.L) up 1.06% and materials supplier CRH (CRH.L) up 0.63%.

The worst performer of the session was Marks & Spencer (MKS.L) on a trading update that detailed a lower profit-margin forecast. Traders punished the stock to the tune of 3.07%.

ARM Holdings (ARM.L) was sucked into the technology stock sell-off the caused the NASDAQ to decline 3.1% or 130pts, the heaviest decline since 2011. ARM shares fell 2.43%.

US markets across the board registered heavy losses. The S&P 500 fell 2.09% or 39pts and the Dow Jones slumped 1.62% giving up 267pts as the tech-stock sell-off knocked investor confidence.

The focus will be on banking stocks today with Wells Fargo and JP Morgan set to deliver quarterly trading updates. Keep a close on financial stocks in the UK as well as the US, earnings will be released late morning.

Unsurprisingly Asian markets closed the week with a negative session. ‘Risk-off’ very much the theme going into the weekend after the rout in US trading.

Japanese stocks were the hardest hit as the exporter-nation continued to struggle with a strengthening yen. The Nikkei 225 closed down 2.38% or 340pts.

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

• CN       Consumer Price Index (YoY)   Miss, Deteriorated
• CN       Consumer Price Index (MoM) In line, Unchanged
• CN       Producer Price Index (YoY)      Miss, Deteriorated
• DE        Consumer Price Index (YoY)   In line, Unchanged
• DE        Consumer Price Index (MoM) In line, Unchanged
• DE        Harmonised CPI                      In Line, Unchanged
• DE        Wholesale Price Index                        In line, Unchanged

See Live Macro calendar for all details

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

• BHP Billiton  polishes up nickel unit as demerger talk swirls
• Vectura to initiate study for asthma medicine Favolir in Europe
• Royal Bank of Scotland secures landmark deal with EU to resume paying dividends
• Co-op Bank apologises, says won’t make a profit in 2014 or 2015
• XP Power says Q1 revenue rises 7%
• Royal Dutch Shell gives up on big subsea project in Norway
• Cambian Group IPO priced at 225p p/sh
• Royal Mail IFA Lazard to be question by parliamentary committee
• Jupiter gets new money boost, flags potential payouts