1630: Close The FTSE closed down 11 points, led by IAG, which continued to fall one day after suffering a downgrade by Investec and growning concern over increasing fuel prices. In economic news, the ONS revealed the number of workless households hit its lowest level since 1996 in the second quarter, while UK retail sales this month rose at their fastest pace since late 2012. The FTSE 100 closed at 6,430.
1559: Wall Street benchmarks have edged higher in morning trade in New York as markets rebound after a heavy sell-off the day before, shrugging off disappointing housing-market data, rising tensions between Syria and the West and concerns over surging oil prices. The Dow Jones is showing gains of 0.3 per cent after falling to a two-month low last night. The FTSE 100 in London, down just 10.83 points at 6,430.14, has trimmed losses and looks to finish well off its intraday low (6,396).
1500: US pending home sales dropped by 1.3 per cent month-on-month in July, versus consensus estimates for an unchanged reading.
1408: UK 10 year bond yields are now rising to 2.79 per cent according to Bloomberg data. To be had in account, the benchmark 10-year issue has changed. "MPC will consider carefully whether, and how best, to stimulate the recovery further should financial conditions tighten and the recovery seem to be falling short of the strong growth we need," Governor Carney has added. BG Group continues to lead gains on the Footsie after results from its Pweza-2 appraisal well in Tanzania led the company to claim that it 'firmed up' its resource estimate for the field of 1.7trn cubib feet of gross recoverable resource.
1359: Liquidity rules to be loosened for banks meeting 7 per cent capita rules, Carney states.
1318: US stock futures have more or less stabilised, with the latest news flow on Syria highlighting that a US intelligence report on the situation may be published tomorrow. UN Secretary General Ban Ki Moon has asked for more time to "establish the facts." Acting as a backdrop, the renewed fall in the Indian rupee, to an all-time-low - versus the US currency has also drawn a fair bit of attention. Today's drop in the rupee was the largest in 18 years. Also worth pointing out, UK 10 year yields are back at 2.75 per cent ahead of a speech from Governor Carney, at 13:45PM.
1305: A little colour - courtesy of Barclays Research - on the potential implications of a negative supply shock in oil on currencies: "The elevated geopolitical risk currently being embedded in Brent crude prices largely reflects the potential for disruption in Syria to spread into neighbouring oil exporters and can clearly be considered as a perceived negative supply shock. [...] A further rise in oil prices
driven by geopolitical uncertainty also suggests more headwinds for some emerging market currencies, particularly those that are sensitive to wider risk aversion (South African Rand, Hungarian Florint), have close geographical proximity (Turkish Lira), energy deficits in their current accounts (South Korean Won, Thai Baht) or a mixture of all (Turkish lira, Indian Rupee)]." FTSE 100 down 36 to 6,405.
1108: Interim results from G4S were below the expectations of analysts at Panmure Gordon "across the board," with organic growth slightly lower than expected. However, they write that: "management has done enough to shore up the balance sheet with the placing and disposals, with more to come in the second half. We would expect the shares
to go down this morning reflecting the pressure on earnings, but think management has made a solid decisive start in turning this business around." The stock faces a clear area of technical resistance towards 260p and earlier in the session hit and then fell back after hitting coming up against its 200 day moving average at 256p. FTSE 100 down 35 to 6,406.
1100: The Confederation of British Industry's distributive trade sales balance rose to +27 in August, from +17 in the month before (Consensus: +20).
0857: US officials said previously undisclosed intelligence, including satellite images and intercepted communications, convinced them the Syrian regime had used chemical weapons against its own people, The Wall Street Journal reports. Investors are also expectant ahead of the much awaited speech from Bank of England Governor Mark Carney, at 13:45.
0833: Markets have started the day on their back foot as investors continue to adjust their positions to take into account the possibility of a military strike against Damascus. Front-month Brent oil futures
are now standing 1.056 dollars higher at 115.59 dollars per barrel on the ICE. Tullow Oil, Royal Dutch Shell and BP are now leading gains on the Footsie, while airlines are leading on the downside, albeit accompanied by shares of precious metals miners such as Randgold Resources and Fresnillo. Strategists from at least one large broker see the risk of 150 dollar
per barrel oil should instability spread from Syria. Historically, at least, the medium-term implications of such a price spike are often limited but in the short-term they can provoke large moves in asset prices.
Acting as a backdrop, both Wall Street and Asia Pacific equities saw large falls in overnight trading. The Indian Rupee saw renewed selling pressure, having dropped by 4 per cent at one point in the session. Some market commentary is linking the renewed depreciation in the Indian currency to fears of the effect that a higher oil price
will have on the country's current account deficit. FTSE 100 down 17 to 6,424.