By This Is Money Reporters
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15.30: The Dow Jones opened about 1 per cent lower in early trading, mirroring the European markets' slide today.
Despite better than expected sales of new homes in May, the Dow is currently 169 points lower (1.3 per cent) at 12,471.5, while the FTSE 100 is now down 53 points at 5,460.
Economy watch: The main focus this week will be final reading for British first-quarter GDP, due on Thursday
12.45:
European markets lost ground as investors steered clear of riskier assets, with the Footsie 31 points (0.5 per cent) lower at 5,483.
The Dax and Cac40 in Frankfurt and Paris respectively were both down by around 1.5 per cent.
Analysts are concerned the eurozone summit on Thursday will not yield a deal that might restore confidence in the future of the 17-country euro currency.
Spain formally requested eurozone rescue loans to recapitalise its debt-laden banks.
Among financial stocks, Lloyds Banking Group was down 0.4p at 31p while Royal Bank of Scotland was off 3.35p to 239.85p amid fears the IT meltdown at NatWest will land it with tens of millions of pounds in compensation and costs.
Essar Energy, which is the new owner of the Stanlow refinery at Ellesmere Port, saw shares fall 8 per cent in the FTSE 250 Index after it reported results broadly in line with market expectations. Profits slumped nearly two-thirds to $129million (£82.7million) in the 15 months to March 31 compared to the previous 12 months.
Shares were off 10.2p to 115.6p after the group booked a loss of $30.2million (£19.4million) from Stanlow but said it was hopeful margins will improve at its new addition.
10.45:
The Footsie drops a little further, down 38 points (0.7 per cent) to 5,475.
'Caution was very much the tone at the end of last week and it is certainly difficult to see much scope for decent equities gains [today] ahead of the latest EU summit this Thursday, and the Italian and Spanish bond auctions on Tuesday,' said David Jones, chief market strategist at IG Index.
'Some modest strength in the mining sector is helping to mitigate wider falls for the FTSE this morning but today may well end up being a replay of Friday’s trade.'
09.30:
The Footsie has slipped 30 points down (0.5 per cent) to 5,483.
Lingering growth fears following downbeat data in the U.S. and China last week and eurozone uncertainty ahead of a key summit later this week meant miners and banking stocks were under pressure.
Fallers included Rio Tinto, which dropped 32.5p to 2949.5p. Pharmaceuticals company Shire was the biggest top flight faller, down 10 per cent or 205.5p to 1760.5p, after U.S. regulators approved generic copies of its hyperactivity drug Adderall XR.
There was also a decline of 2 per cent for Morrisons after respected finance director Richard Pennycook said he planned to leave the business after nearly eight years in the role. Shares were 6.5p lower at 261.95p - more on this story here.
Fellow retailer Marks Spencer fell 4p to 322.8p after the Financial Times reported another senior departure with the defection of menswear head Richard Price to Sir Philip Green's BHS.
The stock also fell on Friday after Exane BNP Paribas issued a note raising concerns about the amount of money spent by the chain on store modernisation and expansion.
08.30:
The FTSE 100 has opened down 20.4 points (0.4 per cent) at 5,493 - despite hope of an early rise - in the face of overnight weakness in Asia.
The UK blue chip index closed down 52.67 points on Friday at 5,513.69, led by falls in miners and energy stocks as a run of weak global economic data cast a cloud over potential demand for commodities.
Friday's meeting of German, French, Italian and Spanish leaders saw Germany agree to a €130billion plan to boost growth, but there was little progress on a more flexible use of Europe's rescue funds ahead of a wider meeting of European leaders this week.
According to a document prepared for the June 28-29 meeting, European leaders will discuss specific steps towards a cross-border banking union, closer fiscal integration and the possibility of a debt redemption fund.
The European Central Bank's move on Friday to start accepting a wider range of collateral in its lending operations in a bid to help ease the stress in Spain's banking sector had reassured investors.
Meanwhile, a 'substantial' amount of quantitative easing by the Bank of England is needed to kick-start Britain's 'stalled' economy, BoE policymaker David Miles said in an interview with the Financial Times.
And UBS said it was cutting its earnings estimates for global mining houses BHP Billiton and Rio Tinto by between 3 and 4 per cent ahead of new mining and carbon taxes that take effect in Australia next week.
No important UK economic data will be released today, with the main focus for the week on the final reading for British first-quarter GDP due on Thursday, although no change is expected from the previous readings for a 0.3 percent quarterly fall and a 0.1 percent annualised decline.
Across the Atlantic, May U.S. new home sales data will be released at 1400 GMT.
Stocks to watch
ESSAR ENERGY posts full-year results.
CITY OF LONDON GROUP unveils full-year results.
COHORT reports full-year results.
KIER GROUP issues a trading update.
PANMURE GORDON holds its annual general meeting.
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