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

UK 100 Index called to open flat at 6835, still holding on to recent gains and yesterday's sideways move likely serving as consolidation for the 200pt bounce and reversal so far. The uptrend is still valid although Jun 11 highs around 6870 may prove a hurdle, coinciding with the projected target of the H&S bottom reversal we highlighted. Thereafter, watch 6900 and its historical vested interest going back 2yrs. Updated watch levels: Bullish 6880, Bearish 6820.

The flat opening call comes as markets await the outcome of this week’s Greek ‘final round’ negotiations that aim to ascertain whether or not Athens is actually capable of implementing the reforms it has proposed to creditors, with many believing that tax increases in particular are futile unless Tsipras’s government can actually collect the taxes – something that has played a major part in engineering the current state of affairs.

The ever-confident Pierre Moscovici remains convinced a deal will likely be struck this week while both Germany and the IMF are still unhappy with key aspects of Greece’s new proposals and have expressed concern regarding the European Commission’s readiness to accept without a thorough examination. EU leaders meet again today to discuss the latest developments while the ECB continues to pump ELA into Greek banks as deposit outflows ease amid renewed confidence.

US markets closed mildly positive yesterday and continue to be largely flat in futures trading this morning after the Fed’s Powell confused everyone by saying the chances of a September rate rise were 50-50, following that up with a forecast for a second hike in December. Or a first hike. Or no hike.

The BoE’s ‘uber hawk’ Weale, meanwhile, has come out with all guns blazing talking of an August UK interest rate rise (mortgages more expensive, bearish for hitherto laughing house builders?) citing rising wages (inflation-beating? Of course, inflation is zilch) and low unemployment that would soon require some attention. Obviously we can’t be having rising wages and low unemployment now, can we?

Asian markets higher, albeit with the same slim gains of US and European counterparts, as investors await evidence of real progress between Greece and its Creditors who stumble on with negotiations (surprise, surprise - differences remain) to secure agreement on the release of funds desperately needed by the beleaguered nation to avoid default. Nonetheless, bank deposit outflows have eased (lowest in 3 weeks) and hopes of another last-minute fudge run high. Like last time. And the time before that.

As we said on Monday, weekend progress was but a plan, not yet a deal and as meetings continue PM Tsipras faces the unenviable domestic task of convincing his parliament of the reforms required, in some cases 'betraying' his anti-austerity anti-bailout election manifesto. Can he convince? Could he survive a revolt in the ranks?

Japan's Nikkei is headed for an 18yr high on Greek deal optimism and BoJ minutes suggesting signs of a pick-up in economic growth and inflation and despite  a fall in small business confidence. A weak JPY also helps after hawkish rate-hike commentary from the Fed's Powell.

Chinese shares outperforming after some choppy trading but helped by continued reversal of last week's sell-off and overnight macro data showing improvement in Consumer Sentiment (an equity bull market helps) and Leading Economic Index even if the latter's growth slowed in May dragged by manufacturing and exports.

In focus today we have German IFO business climate at 9am looking just short of flat in June with the UK’s mortgage approvals following looking for an improvement in the housing market (bullish for housebuilders?). US GDP this afternoon with expectations for an improvement (read less negative) on Q1’s disappointing print. See the live macro-calendar for a full rundown.

Crude prices still sideways with a shift in the supply/demand league tables as Russia (world’s largest oil producer) overtakes Saudi Arabia as China’s biggest supplier while US shale potential causes conventional producers to look elsewhere for customers in general. Progress in Iran nuclear talks continues to threaten to flood the market. WTI currently around $61 while Brent at $64.

Gold still hindered by the strong USD and lack Greek deal optimism dampening safehaven demand. The metal is back near last week's $1175 lows where it may find support, although any further hawkish commentary or US rate-rise positive data could send it lower towards shallow 3-month falling lows at $1160.

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

• Stagecoach meets expectations with full-year profit rise
• Vectura appoints James Ward – Lilley as CEO
• SuperGroup names Nick Wharton finance chief
• Kenmare Resources says unofficial industrial action at Moma mine
• Nostra Terra Oil and Gas appoints new non – executive chairman
• Ultra Electronics reiterates performance to be H2 weighted
• British 'challenger bank' Atom secures licence
• Elementis says full-year EPS to miss current market view
• Vectura Group appoints AstraZeneca executive as CEO