Market overview: Footsie continues to drop in 2015, albeit on light volumes

1630: The prospect of continuing high levels of oil output from the world's main producing nations sent Brent crude futures tumbling 6.2% lower to reach $53.09 per barrel on the ICE. In parallel, at one point in the session front month West Texas crude futures dipped below the $50 per barrel mark on NYMEX. Not surprisingly, that sent oil stocks into a spin, with gains in travel stocks failing to offset. Greek 10-year bond yields jumped by 39 basis points to 9.65%. Mining stocks were also weaker, as three-month copper futures retreated 1.7% to hit $6,137.5 per metric tonne. Nevertheless, trading volumes on the Footsie were lighter than average on Monday. FTSE 100 down 131 points to 6,417.16.

1340: Front Brent crude futures are falling 3.5% to $54.53 per barrel on the ICE. In parallel, West Texas crude futures are off by 3.17% to $51.05 per barrel in6.2% lwoer NYMEX trading. Acting as a backdrop, Greek 10-year bond yields were moving higher by 32 basis points to 9.58%.

1106: With all three of the listed UK supermarkets due to report on Christmas trading this week, Oriel Securities has predicted that Tesco is the most likely to “surprise on the upside”. LFL sales at Tesco - due to report on 8 January - “should benefit from improved customer service and aggressive promotional and vouchering activity but forecasts should equally be fully-loaded for the costs of this”, the broker said. It reckons that LFL sales at Morrisons are most likely to surprise on the downside. Tesco is down 0.3% while Morrisons has fallen 1.3%.

1058: As a result of the drop in the oil price and the 47% fall in the value of the Russian currency, the rouble, BP will incur in a sizeable $750m fourth quarter loss linked to its stake in Russian oil producer Rosneft, analysts cited by the FT said on Monday morning.

1056: Front month West Texas crude futures are falling 1.9% to hit $55.37 per barrel, weighing on oil stocks, which are now the biggest fallers on the Footsie.

1017: Hikma Pharmaceuticals shares edged closer to an all-time high on Monday, in the wake of bullish recommendation from two brokers. The stock, which rose 66.8% in 2014, was among Europe’s best performing small-cap after JP Morgan lifted its price target on Hikma shares by 18.4% and maintained an ‘overweight’ rating, while Jefferies upgraded the stock to 'buy'.

0930: Activity in the UK's construction sector slowed to a 17-month low in December. Markit's purchasing managers' index (PMI) fell back to 57.6 from 59.4 in the prior month (consensus: 59). Nevertheless, the PMI continued to stand above its long-run series average of 54.5.

0845: Retailers are in focus early on in the session ahead of the trading updates which are due out from various companies later in the week. Marks&Spencer is doing worst after being downgraded by analysts at SocGen to ‘hold’ from ‘buy’. Moving in the other direction, transport stocks are powering ahead, fuelled by the drop in the price of oil. Stock in RyanAir Holdings has hit a fresh all-time high on the heels of its latest traffic statistics. Acting as a backdrop, market commentary is highlighting the risk that inflation and growth in the Eurozone will remain very low even if the ECB finally embarks on quantitative easing. Precisely in that regard, Eurozone CPI numbers due out this week may reveal the onset of deflation in the single currency area. FTSE 100 down 18 points to 6,548.