Market overview: Footsie down as cable and euro gain

1630:Close Stocks ended the day lower amid a renewed bout of volatility across all asset classes worldwide. By the end of trading an odd collection of airlines, financials and pharmaceuticals were to be found at the bottom of the pile on the Footsie. Over on the FTSE 250, it was pub operators and smaller oil outfits such as Tullow Oil and Hunting that were putting in the best showing. A late afternoon announcement that the ECB had extended further liquidity assistance to Greece seemed to temper frayed nerves. That came ahead of tomorrow’s release of a raft of macroeconomic indicators in China and the BoE’s latest inflation report. Cable gained altitude versus the US dollar alongside the single currency, finishing the session up by 0.75% to 1.5694. FTSE 100 down 96.05 points to 6,933.80.

1607: On today's cross asset market volatility, Jasper Lawler at CMC Markets says: "This unwinding of the yield differential between treasuries and bunds is driving EUR/USD higher which in turn is causing a drop in the German DAX stock index. German stocks, mirroring the wider economy tend to be export-orientated and are sensitive to moves in the euro, which up until recently had been falling because of quantitative easing by the ECB." The sell-off in bonds might lead to asset re-allocation to stocks and boost stock markets, particularly those with a strong dividend payout in the medium term, Lawler adds.

1559: The FTSE has bounced off its lows of the day (6,887.52) and is now trading down 91 points (-1.3%) at 6,939 as stocks on Wall Street erase losses. US Treasury yields, which had shot up to a high of 2.36% early on, are now down 2bp at 2.27%.

1537: Easyjet is now trading down 10% at 1,648.75p, trading at levels not seen since early March, after disappointing investors with a cautious outlook alongside its interim results. Credit Suisse has maintained an 'outperform' rating on the stock but lowered its target price from 2,050p to 1,973p.

1416: BHP BIlliton stock is higher after forecasting Western Australia iron ore cash costs of $16 per metric tonne, a couple of dollars less than broker Investec had been expecting.

1415: Credit-checking outfit Experian is among the few risers on the FTSE 100 after returning to organic revenue growth in the fourth quarter. "Experian’s full-year results were slightly below expectations but the strategy looks to be on track with a return to organic revenue growth in Q4. Experian is executing strongly against a new strategic framework across five priority goals," Charles Stanley says in a just issued research note.

1414: Lloyds continues to outperform a falling market and sector on news the State has lowered its stake in the lender below 20%. "The continued dilution of the government’s stake also reduces the influence the government can have on how the bank manages its day to day operations. That has to be a good thing given it also gives the bank more control of when to increase its dividend. With the share price well above 80p the likelihood is that the Chancellor will continue to pare down the government’s stake at a much faster rate," says Michael Hewson, chief market analysts at CMC Markets.

1245: Greek cash reserves are at approximately €90m according to a report citing Eurosystem sources. It comes amid widespread speculation on Tuesday morning on whether the country can make it until the end of the month of the end of June at very best. Another source,cited by Market News International, confirms that report and adds Athens needs to raise more funds to pay salaries at the end of May. Creditors still fall apart, the source has told MNI.

1220: Three-month copper futures are higher by 1.2% to $6,438.50 per metric tonne on the LME.

1213: US telecommunications giant Verizon Communications has launched a $50 per share offer for AOL, for a total of $4.4bn.

1128: The yield on 10-year Bunds was up by 12 basis points to 0.73%. Similarly, the yield on 10-year Italian government debt was higher by 12 basis points to 1.87%. Euro/dollar is higher by 0.92% to 1.1264, with cable jumping 0.8% alongside to 1.5698. Front month Brent crude futures advanced by 2.14% to $66.33 per barrel on the ICE. The Dax-30 is now losing 2.13% to 11,425.11 points while the Footsie is off by 128.50 points to 6,901.35. Front month Brent crude futures are advancing 2.14% to $66.33 per barrel on the ICE.

0930: UK industrial production rose by 0.7% year-on-year in March (consensus: 0.5%), sending cable immediately higher to trade at 1.5644.

0902: Lower bond yields mean a lower weighted average cost of capital for Savills, leading Barclays analysts to hike their price target on the property services firm by 35%, as they reinstate the firm as their top pick in the sector.

0901: Commenting on Speedy Hire Peel Hunt has pointed out how trading on 20.8 times March 2016 earnings estimates they are implicitly discounting - in his opinion - the delivery of its turnaround plan, "but with no material upgrades at this stage we can see profit taking".

0900: Analysts at Macquarie have downgraded their recommendation on shares of HSBC by two notches to underperform and that on StanChart to underperform.

0840: Stocks have started the morning sharply lower despite what appears to have been a positive conclusion to last night’s meeting of the Eurogroup to analyse the Greek situation. easyJet is the worst performer in the early going by a wide margin following the company’s first half numbers. German 10-year Bund yields are again under pressure, tracking overnight losses in US Treasuries. Gilts are also under pressure. Industrial production data is scheduled for release at 09:30. Cable is little changed versus last night’s close, and is now changing hands at 1.5586. FTSE 100 down 69 points to 6,960.98.