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

  UK 100 called to open up 4pts at 6832, after a bout of profit taking yesterday.

Traders cashed out of equities after last week's rally, making the most of record levels registered in the U.S. as our American counterparts returned to the market after Friday's holiday.

88 of UK 100 companies fell yesterday. The hardest hit was Tullow Oil (TLW.L) falling 3.14% on reports of violence between local militia and the Ugandan army near its operations in Uganda.

Barratt Developments (BDEV.L) and Persimmon (PSN.L) fell 2.54% and 1.84% as traders booked profits looking for lower entry levels after a good week for house builder share prices.

EARNINGS NEWS - counterpart Bovis Homes (BVS.L) says completions rise in the first half 2014 by 54%, margin increased by 15%.

Marks & Spencer (MKS.L) fell 0.71% yesterday ahead of today's trading update - Underlying non-food sales fell for a 12th straight quarter, blames new web platform. Sales fell 1.5% in the last quarter, in-line with analysts' forecasts of a 1-2% fall.

Keep an eye on easyJet (EZJ.L) and International Consolidated Air (IAG.L) this morning as Air France KLM issues a profit warning. German peer Lufthansa also issued a profit warning two weeks ago.

Barclays (BARC.L) shed another 1.14% yesterday taking the price to 216p. The stock is now just 3% above its 2014 low and 38% away from its 2014 high following the recent lawsuit filed by the U.S Attorney General.

In U.S. markets profit taking was also the theme of the day. The Dow Jones fell 44pts but kept its head above 17,000 to close at 17,024pts just 50pts from its highest ever level.

Alcoa unofficially kicks off earnings season in the States today. The world's largest aluminium company will deliver a trading statement after the bell this evening - watch for movements in commodity related stocks.

Asian stocks followed suit, the MSCI Asia Pacific Index fell from a six-year high led by profit taking and declining Japanese exporters on a stronger Yen.

In focus today we have UK Industrial and Manufacturing Production figures released at 9:30am followed by GDP estimates at 15:00pm.

Despite the equity market sell-off, commodities remained out of favour and gold remained in a holding pattern trading at $1315 as investors assessed the timing of US interest rate increases. However money managers increased net-long positions for a fourth straight week, and holdings in exchange-traded products are climbing at the fastest pace since 2012. WTI fell to $103.4 a barrel, heading towards one-month lows, capping its longest losing streak since 2009 ahead of oil data being released. Brent fell below $110 as Libya continues to resume production.

In FX the yen had its biggest gain in a week on its appeal as a safe haven currency, as Japan reported a bigger-than-expected current-account surplus and markets extended declines from record highs.

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

• JP            Current Account                               BETTER
• JP            Trade Balance                                    BETTER
• AU          NAB Business Confidence            BETTER

See Live Macro calendar for full details

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

• Petroceltic completes farm-out deal for Algerian field
• Homeware retailer Dunelm full-year profit seen rising 7 pct
• Dunelm anticipates pretax profit for year about 116 mln stg
• M&S blames new website for quarterly sales fall
• XP Power's first-half revenue grows 2 pct
• SIG says outlook for UK remains positive
• Dechra Pharmaceuticals says FY revenue up about 1.6 pct