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

UK 100 Index called to open -25pts at 6780 with the recent uptrend again failing to overcome resistance at 6875 and overnight weakness seeing it fall back below 6800. While declines could extend as low as the 200-day moving average 6744, recovery from there could also form the second shoulder and complete a June bullish reverse Head & Shoulders bottom with upside potential to all-time highs. Updated watch levels: Bullish 6805, Bearish 6740.

The negative opening call comes after another disappointing day that saw bailout negotiations going right to the wire as any deal is now put off until the weekend, which now presents the final opportunity for an agreement between the two camps – a Grexit being ‘unavoidable’ if progress is not made by close of play Sunday, with the June 30 deadline for a $1.7bn IMF loan repayment just the other side. Serious stuff.

US markets closed negative taking cues from the obvious with little else getting a look in (macro data met consensus expectations but has thus far failed to rouse hawkish members of the Fed) as bargaining room continues to shrink with Angela Merkel saying it’s not possible to find extra funds for Greece (as demanded by PM Tsipras) beyond what is left in the current bailout program without a decisive agreement.

While we might berate Greece for stringing things out, why wouldn't it do so until the last minute? Again. It knows exactly what the other side wants and can simply agree to just in the nick of time. Again. Until then, you never know what the purse-string-holders might concede, improving the final deal. The only risk is whether Greek depositors are prepared to hold out too. If they exit en masse they could force Tsipras' and Syriza's hand in terms of potential financial collapse.

Asian equities are following EU/US markets lower with the Greek deal impasse and prospect of having to wait out yet another weekend for another last-minute agreement trumping solid macro data. However declines are not as sharp as might be expected moving into another decisive weekend summit, suggesting the prospect of a Grexit is not as scary as it once was. Five days and counting until the month-end deadline but progress needed Saturday so legislation can be passed.

Chinese stocks continue to tumble (Shanghai -7.5%) on heightening concerns that its marathon margin trading-fuelled bull market has peaked, more uncertainty about whether the government will continue to ease policy to boost the economy. Note Morgan Stanley saying don't buy  the current dip, at odds with JPMorgan's Monday call that declines were a reason to buy. 

Australia's ASX down more than EU and US counterparts with lower commodity prices to blame while Hong Kong's Hang Seng is suffering from mainland China weakness. The outperfomer, Japan's Nikkei , is just negative thanks to solid jobs data, better than expected inflation and consumer spending and despite a stronger JPY.

Not much of great importance on today’s macro-calendar bar, of course, 9am’s EU leaders summit with US UoM sentiment (looking to be flat) and the Baker Hughes rig count this afternoon.

Crude prices still range-bound into the weekend with Brent ($63) and US light ($59) languishing  in shallow week-long rising channels (to put a positive spin on things) while remaining essentially sideways as stubborn US supply and the highest output from the Middle-East on record caps 2015’s rally.

Gold continues to languish around $1175 failing to benefit from safehaven demand in spite of the threat of  Greek exit form the Eurozone. Still in downtrend from 22 Jun. Sideways since May.

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

• Spire Healthcare says Cinven sells stake at 340 p/share
• Tesco beats forecasts with improved quarterly trading
• Trinity Mirror warns on first-half revenue
• Trinity Mirror sees 11% fall in half-year revenue
• Dunelm names John Browett CEO effective Jan. 1
• IGas Energy says FY revenue drops to £58.2m