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

UK 100 Index called to open -25pts at 6655, trading back down at Tues multi-month lows 6655. The trend of falling highs from end-May remains unbroken. Any prolonged trading around 6655 could generate excitement about a bullish double-bottom reversal, although we said that at 6750 on Mon before another leg down. The bears also point to 6750 coinciding with the 200-day moving average which served as resistance yesterday so is now likely a rebound hurdle to completion of any recovery rally. Watch levels: Bullish 6705, Bearish 6645.

The negative opening call comes after dovish (or rather ‘cautiously hawkish’) FOMC minutes on Wednesday where the US Fed cut its growth forecast and interest rate outlook for the world’s #1 economy.

Talk of US interest rate rises beginning in late 2015 saw a weakening of the USD while it was stressed that the Fed, A) still needs to see more convincing evidence by way of macro-economic data and, B) certainly does not intend to shock the market with a ‘one fell swoop’ approach – rather a gentle levitation over the coming years.

The rate of increase is, of course, far more important than the timing of lift-off and markets will be reassured by yesterday’s Fed minutes that, for once, gave them something useful to mull over while remaining depressed by Greece.

US equity markets closed just positive yesterday while futures retraced those gains overnight with Greek debt negotiations continuing to dominate this morning, heading as we are towards an unprecedented major breakdown in relationships (and building up of new ones between Athens and Moscow?) and subsequent exit from the Eurozone while the ECB continues to support Greek banks to the bitter end with ELA.

In focus this morning we have UK retail sales at 0930 with consensus expectations looking at a contraction both on the month and on the year – such data being key to the Bank of England’s own interest rate decisions (BoE’s Forbes on the wires this morning talking UK rate rises ‘in not too distant future’) as it braces for signals from the US.

This afternoon sees US CPI and jobless claims seen largely flat while the (US) Philly Fed’s business outlook is looking for an improvement in June. Note German Chancellor Merkel speaking this afternoon too.  See the live macro-calendar for a full rundown.

Asian equities trading lower, in stark contrast to a positive US close and more in-line with the weak European finish. This follows a slightly more dovish Fed policy update and with sentiment still held back by Greek woes; little expected from another meeting of EU finance ministers this afternoon. Next week? Tick-tock.

The Fed’s next move remains data-dependent (improving but need more evidence) with members divided on one or two hikes this year, forecasting a shallower rate rise trajectory and making cuts to 2015 growth forecasts. This suggests questionable US demand which has dented the dollar and strengthened Asian FX, thus hurting exporters in the region.

Japan’s Nikkei hurt by stronger JPY ahead of a BoJ meeting tonight hot on the heels of the Fed. Australia’s ASX led lower by resources (lower metals and oil price) and banks. Note Hong Kong flat after pro-democracy lawmakers voted against the China-backed election plan for the city which triggered the ‘Occupy’ protests last year.

China stocks underperforming, making it down three days from four on over-valuation and bubble concerns after the biggest IPO since 2010, with financials and tech leading the fallers. Little help from a slowing in China property price declines with it being a ninth negative month in a row.

Gold is a notable beneficiary of a Fed-weakened USD, trading back up around Tuesday’s highs of $1190. With Greece ever closer to default, safehaven demand likely also perked up. The 100-day moving average remains a hurdle at $1193. The metal remains in a sideways $1175-1190 range.

A seventh straight fall in US weekly crude oil stockpiles was easily soaked up by a 112,000 barrel increase (against a forecast 850,000 barrel fall) in Cushing, Oklahoma inventories which kept stockpiles around levels not seen at this time of year in 80 years. There’s still a hell of a lot of oil kicking about then, and prices reacted in kind yesterday by falling by up to $2 a barrel. WTI currently off yesterday’s lows an holding just below $60 while Brent tickling resistance at $63.

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

• John Wood awarded Saudi Aramco offshore contract
• Playtech plans equity raise to fund M&A, says confident on growth
• Darty's FY adjusted pre-tax profit falls to €51.3m
• UK's Poundland cautious on first half outlook
• Premier Farnell sees H1 adjusted operating profit marginally below last year
• Hunters property plc – intention to float on aim
• Charles Stanley says FY pre-tax loss of £6.1m
• Barratt Developments poaches William Hill Finance Director Neil Cooper