Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

UK 100 Index called to open -30pts at 6755, finding support overnight at last Tues’ lows of 6730 following weak start to new week by futures. Bulls still hold on to hopes of rebound towards 7000, optimistic of bullish double-bottom reversal. On flip-side, Bears still have eyes on falling highs from May 25 and drop back to 1 Apr lows of 6670, completing full retrace of April 1-16 rally. Watch levels: Bullish 6805, Bearish 6720.

The negative start to the new week comes after yet another breakdown in weekend talks between Greece and creditors, this time after just 45 mins (record?) with ‘progress, but still significant gaps’ on the reforms-for-cash effort and each side holding their ground in terms of how much ground they will cede.

Talk of defining week for last ditch-negotiations in terms of racing reforms through parliament before month-end in order to avoid debt default. Finance Minister Varoufakis told German paper Bild that Gr-exit not sensible and debt restructuring the only answer, with deal possible but Merkel must take part.

Also weighing is Friday’s cut to the UK outlook (AAA Negative from Stable) by ratings agency S&P’s on fears of UK exit from EU, although note peer ratings agency Fitch affirming the UK at AA+ Stable and France at AA Stable.  Note Wednesday’s Fed meeting also likely to see investors hold back.

Asian stocks weak on news about the Greek weekend talks failure and following the negative close by US bourses (no help from consumer sentiment bounce), alarmed at talk of European officials preparing for worst case Euro-exit scenario for Greece, the IMF having left Athens, another weekend of more bailout talks and the UK outlook update by S&P after the European close.

In focus today we have US Empire State Manufacturing seen improving along with US Industrial/Manufacturing Production and US NAHB Housing Index. Note ECB Prescient Draghi speaking at 2pm which could see the EUR swing with an impact on major FX peers USD, GBP and JPY.

Gold’s sideways around $1180 still struggling under the weight of falling highs from 22 May. Uncertainty related to Greece and strong USD playing against each other, while Fibonacci and major moving averages also playing their part.

Oil also sideways with US Light Crude just under $60 despite another drop in Baker Hughes US Rig Count on Friday. Brent Crude flirting with rising support from mid-Jan at $64. Strong USD still hampering both on US rate hike fears and uncertainty over global demand.

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UK Company Headlines: (Source: Reuters/DJ Newswires/Bloomberg)

• NMC Health buys ProVita International for $160.6 mln
• Dragon Oil agrees to higher 750p/share ENOC offer
• Thomas Cook forms China joint venture with Fosun
• S.Korean snack maker Orion considering bid for Tesco unit
• River and Mercantile Appointed For Royal Mail Pension Plan Mandate
• Vedanta Resources announces Merger of Vedanta Limited and Cairn India Limited