Market overview: US non-manufacturing composite index falls more than expected

1500: US factory orders fell 0.7% in January, more than the 0.4% predicted by analysts. It also declined by 0.7% the previous month.

1300: Lloyds Banking Group reportedly wants to be waived from new UK rules requiring banks to have separate boards of directors for their retail and investment operations. Sources told the Financial Times that Lloyds was seeking an exemption from the requirement.

1130: Energy stocks are still in the red as oil prices continue to slide. “The recent sharp falls in the oil price reflect OPEC putting the squeeze on non-OPEC producers (primarily shale oil), to see who will blink first,” Schroders said in a note.

0935: The UK services PMI dropped from 58.6 to 55.8 in December, disappointing those looking for only a modest decline to 58.5. As such, the UK composite PMI fell from 57.6 to 55.2 (forecast: 57.4). “Despite the fall, the composite PMI remains a little above average levels, and so consistent with marginally above trend growth,” said analysts at BNP Paribas.

0925: The final Eurozone composite PMI was unexpectedly revised down from 51.7 to 51.4 for December, above November’s 51.1 but below forecasts for no change.

0916: Equipment rental firm Ashtead has dropped 7%, tracking declines seen in the share price of US peer United Rentals which was hit with a broker downgrade from Evercore. The broker lowered its rating for the US firm from ‘buy’ to ‘sell’, saying that the recent collapse in oil will affect energy investments and the construction market.

0900: Mining stocks are edging higher, including Anglo American, Fresnillo, Rio Tinto and Randgold, after service-sector figures from China improved slightly. HSBC’s China services purchasing managers’ index for December rose from 53 to 53.4. Services PMIs from Europe, the UK and US are all due out today.

0845: After a subdued start, the FTSE 100 has dropped into the red, extending losses after a 2% sell-off yesterday. The index is currently down around 0.7%. “With a slew of economic figures due this week traders will be cautious,” said trader Rocky Muddar from TradeNext. WTI crude is down 1.1% at $49.47/bbl early on ahead of data from the Energy Information Administration on Wednesday, which is expected to show that US crude stockpiles increased last week Oil and gas stocks are under pressure again, with Nostrum Oil & Gas, Tullow Oil and Ophir Energy falling sharply.