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

UK Index called to open -40pts at 6,760 and the German DAX -75pts at 9,876 following a selloff in US and Asian equity markets as tensions intensified in Iraq. The Wall Street Journal reported that Syrian air raids inside the Iraq’s borders killed at least 50 people. This was a drastic change from yesterday’s trading session which was a quiet affair, and only saw the UK Index down by 12pts and the DAX positive by 17pts.

US markets fell for a second day having failed to reach record highs again, as reports of escalating violence in the Middle East overshadowed better than expected macro-data. The Dow was down by 120pts to 16,818, its biggest drop since May 20^th  and the S&P 500 down by 0.6% to 1,949 to post it biggest daily loss since June 12^th. Despite consumer confidence hitting a six-year high and market still trading within touching distance of all-time highs, with tensions building in Iraq and air strikes, this gave traders a reason to sell.

Asian markets followed their peers and fell, led by material shares as traders moved away from riskier assets. The Nikkei edged lower by 100pts to 15,279 echoing losses on the Dow, as PM Abe’s stimulus package was met by a muted market reaction. Australian ASX was down by 0.5% to two-week lows as miners weighed significantly on the index.

In focus today, US first quarter GDP data at 13:30. DO NOT MISS THIS! Historically this information has moved global indices such as the Dow Jones, DAX and UK Index by triple digits.

In commodities, last night's global equity rout saw gold steady at $1312 having hit a two-month high yesterday. The escalating violence ensured oil prices remain toppy with WTI at $106 and Brent at over $114. In FX space the Sterling was the notable faller losing out to 13 of 16 major peers as Mark Carney said wages weren’t rising as quickly as the central bank anticipated, damping speculation of an imminent increase in interest rates.

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

• JP           PPI Services                                        BETTER
• DE          GFK Consumer Confidence           BETTER

See Live Macro calendar for full details

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

•             Fastjet disposes of loss-making Fly 540 Kenya

•             Balfour JV receives instruction for new phase at Sellafield

•             Northgate full-year underlyting pretax profit rises

•             Spire hospital group to float on London Stock Exchange

•             Premier Oil promotes FD Tony Durrant to CEO role

•             U.S. court backs Shire in patent fight over Vyvanse drug

•             Gulf Keystone Petroleum to restart search for two new independent non-exec directors

•             Stagecoach group FY results in line, raises dividend

•             Bunzl sees H1 revenue growth of 6 pct