Market overview: Defence stocks help to prop up index

1547: US authorities have reportedly subpoenaed various interdealer brokers, including Icap and Tullet Prebon as part of a probe into currency-market 'spoofing'.

1546: In its best 'Macro' trades for 2016 BofA-Merrill Lynch says they expect a 9% depreciation in the Chinese yuan in 2016 to 7.0 versus the US dollar, versus the 3% depreciation implied right now by forwards.

1539: Argentina´s benchmark Merval index is moving 2.88% lower to 14,415.93 points after last weekend´s elections.

1500: US existing home sales dropped 3.4% month-on-month in October to reach an annualised pace of 5.36m (consensus: 5.4m).

1354: "There is some speculation that the 75 p discount rate could be lifted. While this is different to the Fed funds rate and unlikely in itself to be impactful, it would ultimately signal that the FOMC is making preparations for tightening mode and further underpin the greenback at the expense of risk assets," Brenda Kelly at LCG points out.

1330: Three-month copper futures are down by 3.3% to $4,499.5 per metric tonne on the LME.

1254: IAG has been approached by foreign governments and others about possible deals, the company´s chief said, adding the carrier still had an appetite for new purchases, Dow Jones reports.

1253: Ahead of today´s SDSR Alistair McCaig at IG is telling Reuters that "there is every likelihood that the defence sector is going to get a larger piece of financing than expected earlier."

1255: ITV has sealed a deal to buy singing talent show 'The Voice', which has global viewing figures of 300m, and spin-off 'The Voice Kids' from the BBC. They will be shown on the main ITV channel from 2017, as part of a new three-year deal announced today. The Voice was founded by John De Mol, whose Talpa Media company ITV bought in May.

1200: The Saudi government is willing to use all measures necessary to ensure a stable oil market, a report citing Bloomberg indicates. As of 12:00 front month Brent crude futures were cutting their losses to trade down by 1.04% at $44.20 per barrel on the ICE.

1040: Shares of Home Retail are at the top of the leaderboard following a report in the Sunday Times that various industry experts have been called on to advise on potential private equity approaches, with Home Retail's board said to be on the alert for an offer.

1030: Three-month copper futures on the LME are falling 1.7% to $4,477 per metric tonne on the LME, a fresh six-year low.

0950: David Cumming, head of equities at Standard Life Investments, has told the BBC that HSBC is being put at a "competitive disadvantage" by "ever-increasing capital requirements". Standard Life would back the lender if it decided to move its headquarters away from the City, he said.

0858: Markit´s manufacturing sector purchasing managers´ index for November has printed at 52.8. well ahead of the 52.3 expected by economists. Worth noting, the French services PMI fell back. "Our PMI-based GDP indicator stands at 0.5% q/q, a touch above our 0.4% q/q growth forecast. But it is worth highlighting that risks are skewed to the downside, as intensified geopolitical tensions could dampen business and consumer confidence in the months ahead, hitting the main engine of the euro area recovery: private consumption," said Barclays.

0857: Stocks have begun the morning lower weighed down by miners, as price for copper and oil slip. Frontmonth Brent crude futures were lower by 1.96% to $43.86 per barrel on the ICE. Rolls Royce and BAE Systems are the top of the leaderboard ahead of today´s Strategic Defence and Security Review.