Markets are drifting lower this morning as investors await a crucial meeting of European Leaders in Brussels this week that will set the tone for market direction throughout the summer months.

The Summit is expected to give some clarity on the various positions taken by the leadership on issues such as new growth pledges, moves towards a banking union across the region and how best to deal with the newly elected government in Greece to get the debt-stricken nation's austerity plan back on track.

Debt markets are also reflecting some of the broader concerns of investors on the day where Spain made its formal – albeit opaque – request for as much as €100bn in rescue funds from its European partners.

Credit protection prices for bonds issued by Spain and Italy are on the rise this morning while yields on the safest Germany bunds have fallen sharply. In the currency markets, the Euro is trading at a two-week low against the US dollar.

Written & Presented by Martin Baccardax