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

The UK 100 Index is called to open higher by 12pts at 6839pts following a subdued trading session yesterday, the index gained just 4pts.

Starting with the losers - Royal Bank of Scotland (RBS.L) finished bottom of the table down 2.44%.

The shares ran into resistance at 365p, a level technical traders would have observed. Questions were also being asked regarding the company's latest fine (£14.5m) for providing poor advice to mortgage customers. Whilst £14.5m means very little in the banking world, this is in relation to just 30,000 cases - the tip of the iceberg?

Lloyds Banking Group (LLOY.L) and Barclays (BARC.L) were tarred with the same brush falling 1.36% and 0.78%.

Randgold Resources (RRS.L) and Fresnillo (FRES.L) declined 1.85% and 1.19% respectively as the price of gold slipped more than $20 to $1264 as a strengthening dollar curbed demand.

AstraZeneca (AZN.L) fell 0.8% as it sought to play down speculation of a new bid. Its chief executive told Reuters that everything was "back to normal" in spite of speculation that Pfizer (PFE.N) could make a new bid for the British company.

Barratt Developments (BDEV.L) shed 1.74%, it looks likely the stock will exit the UK 100 alongside Rexam (REX.L) to be replaced by Direct Line (DLG.L) and Dixons Carphone (DC..L).

To yesterday's winners - Weir Group (WEIR.L) secured top spot up 2.54% after receiving a vote of confidence from analysts at Credit Suisse upgrading the stock from 'neutral' to 'outperform' and increasing the target price to 3060p.

Anglo American (AAL.L) added 2.53% the CEO said the company is open to takeover offers.

Tesco (TSCO.L) finally attracted bargain hunters after falling to an 11-year low. Shares closed higher by 2.37%. J Sainsbury (SBRY.L) clung on to the coat tails, also gaining 1.80%.

Vodafone (VOD.L) hit a three-month high with traders citing a Nikkei report suggesting the British mobile operator may become a takeover target for Japanese telecoms firm SoftBank.

U.S. factory output grew in August at the fastest pace in three years but failed to inspire trader with shallow gains or losses registered. The Dow Jones closed lower by 30pts at 17,067 while the NASDAQ advanced 0.4% to 4,598.

Asian stocks rallied as non-manufacturing activity in China jumped the most on record after its lowest-ever reading last month. The Hang Seng jumped over 2% to record a new 2014 high. The Shanghai Composite Index followed suit adding 1% and notching a 2014 high.

The Nikkei added 0.4% on optimism Japan's Prime Minister Shinzo Abe's cabinet shake-up will benefit the economy.

In commodities, gold retreated for a third day trading at $1280 as tensions continued to ease in Ukraine. West Texas Intermediate crude fell to $95.52 amid speculation that weakening manufacturing from Germany to China will cap global oil demand. Brent was steady in London.

In focus today we have UK construction PMI at 09:30 and Euro Zone PPI at 10:00. Later this afternoon we have US ISM manufacturing data at 15:00 expected to come in at 57 slightly below last month’s reading.

In commodities, gold fell to its lowest levels in 11 weeks to trade at $1262 as US ISM data came in at a three year high, spurring gains in the dollar. Silver followed suit hitting lows last seen in early June to trade at $19.08. WTI fell for the first time in five days plunging as much as 3.2% to trade at $92.88 lowest level since January 14^th amid speculation on slowing manufacturing from Europe to China will curb global demand. Brent followed down by 2.4% to trade just above the psychological level of $100 a barrel.

In FX, with ISM data better than expected, the dollar rose to the strongest in almost eight months against the yen on bets quickening U.S. growth will spur the Fed to increase interest rates sooner than traders anticipate.

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

• CH          Non-Manufacturing PMI              Improved
• JP            MARKIT PMI Services                     Declined
• CH          HSBC PMI Services                          Improved
• AU          GDP                                                       Better

See Live Macro Calendar for full data line-up, incl. consensus expectations

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

• Galliford Try wins 106 mln stg housing contracts
• Safestore sees fourth-qtr UK occupancy being lower than third-qtr
• Spirit Pub sees FY results ahead of market expectation
• Amara Mining says 2014 drilling campaign two-thirds complete
• Petards Group appoints Paul Negus as director
• Ashtead raises full-year guidance after profits soar
• Genus full-year adjusted pretax profit dips
• Circle Oil first-half revenue rises 13 pct