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

UK 100 Index called to open -5pts at 6700, yesterday’s rally having found resistance at the 200-day moving average 6744 as was suggested. This keeps the downtrend from end-May in play and maintains the potential for further downside. A Double- or triple-bottom reversal is still possible given the dominating downtrend, but failure to better 6750 could also lead to a double-top and another leg down. Our Watch levels: Bullish 6765, Bearish 6640.

The slightly negative opening call comes after a rally in the US on Thursday that shrugged off Greek uncertainty (fast becoming certainty…) to post gains on more dovish than expected tones from Janet Yellen’s Federal Reserve and consensus-beating macro data that helped the Nasdaq to a new record close.

The US performance helped keep the UK Index just above the waterline amid reactive BoE comments about the UK’s own interest rate outlook and with other European markets similarly buoyed despite the ongoing Greek saga (most notably the DAX) as talks yet again ended without agreement (Eurogroup head Dijsselbloem warning that we are on the road to a Grexit) but with another emergency summit planned for Monday.

Asian equities are tracking 1% gains by Wall Street (note Nasdaq record close; S&P almost retraced sell-off ), led by Energy and weaker USD, helped by the fallout from a dovish Fed update and BoJ leaving its own accomodative policy unchanged as it sees the economy recover at a moderate pace.

Stocks higher despite yet another failed Eurozone meeting on Greece (expectations were low) and it looking like we must wait out yet another Greekend for fresh Athenian proposals at a crisis summit on Monday as Creditors stand their ground. Note Euro Group Head Dijsselbloem, while hopeful, is prepared for all eventualities (read Gr-Exit from Euro)

China is the exception, down 4 out of 5 session, on continued bubble fears and a flurry of hyped IPOs, and despite an improvement to growth/optimism by the MNI Busniess Sentiment reading. The hitherto darling Shanghai composite is now technically in correction territory (down >10%) from its 12 Jun highs after its worst week since Oct 2008 (-9.5%).

Japan's Nikkei benefiting from a slightly stronger USD and weaker JPY and despite  muted macro data while Hong Kong's Hang Seng manages to shrugs off weakness on the mainland. Note Australia's ASX outperforming thanks to  the weaker USD helping the commodities space.

In focus this morning we have UK public finance data looking for an increase in net borrowing while EU finance ministers are meeting to talk about Euro-issues. No prizes for guessing what they might be. This afternoon sees Canadian CPI and retail sales looking mixed while the Baker Hughes rig count (oil) rounds off the week at 18.00. As always, see the live macro-calendar for a full rundown.

Gold managed to break above 50-day moving average to test the 100-day and the key $1200 level helped by USD weakness following the Fed update. Another breakdown in Greek debt talks likely adds to safehaven demand while Russia and the Middle East do their bit too. Potential for $1200 to become support for a rally back to $1230 May highs. 

Oil little changed this morning with the opposing forces of down-trending US dollar basket and a bearish supply/demand outlook battling it out and US shale producers expected to pump up output in 2015 after a crude rally that’s lost momentum around the bugbear $60 mark, prices above which make fracking more viable. Both WTI ($60) and Brent ($64) in respective apexes of triangle patterns with little change expected today.

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

• Card Factory says management employees to sell about 7.4m shares
• Fyffes significantly increases its earning target for 2015
• Petrofac secures $400mn of repeat UKCS business
• Standard Life says Keith Skeoch to replace David Nish as CEO
• N Brown says Q1 product revenue +4.3%
• Aer Lingus says begins distributing official IAG offer
• Auto Trader posts profit rise, says New Year started well