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

UK 100 Index called to open -30pts at 6705, with yet another sell-off from 6750 overnight serving to reinforce the level as bugbear resistance due to seemingly impenetrable trend-line of falling highs from June 4 and 200-day moving average just above. This maintains 2-month downtrend and increases likelihood of correction back to longer-term 10-month rising support at 6500 from whence we recently bounced. Watch levels: Bullish 6770, Bearish 6645.

The negative opening call comes despite news of Greek #3 bailout talks having completed and a deal (possibly higher than €86bn) within reach and only a few small details pending (incl. fiscal outlook, size). Scepticism (we call it realism) has us point to bailout history confirming that it takes but one small detail to scupper a deal.

Furthermore, after awful weekend Trade data the PBOC looks to be admitting that China growth picture not as rosy as it would like us to believe, taking extreme stimulus step of allowing Yuan to devalue almost 2% - the most in 20 years - to help exports and combat the inevitable growth slowdown. The move has rippled across Asian markets (equities and FX).

Asian stocks mixed overnight, despite positive US close, with Chinese stocks making 2-week highs after the Yuan devaluation and Hong Kong equities benefiting from the knock-on. Other regional markets suffering from USD rally reaction to China FX move, negating some of yesterday’s support for commodities (Copper, Oil, Gold) and denting raw material rebound.

US futures off their overnight highs this morning following some good gains on Wall St. yesterday - partly due to bargain hunting after last week’s downtrend but markets also benefitting from  renewed optimism on Greek bailout negotiations which appear to be at or near their conclusion.

Plenty of US Fed chat with vice chair Fischer telling it like it is -  that the US is in a situation of nearly full employment but very low inflation while Lockhart refrained this time from direct reference to a September (while maintaining a 1st rate rise is close) in contrast to last week’s untowardly hawkish comments.

More fallout from last week’s ‘Super Thursday’ saw BoE policy maker Miles said he had seen a reasonable case to vote for higher UK interest rates last week but did not find the arguments conclusive.

Stateside earnings season saw (Warren Buffet’s recent joint project with Brazilian private equity firm 3G) Kraft Heinz disappoint (Kraft profits up while Heinz made a loss) as the newly merged company gave its last set of results as two separate entities. No additional outlook given and no conference call held. Knock-on potential for EU stock Nestle which reports on Thursday, given similar happenings in the media sector earlier this week.

Elsewhere, a radical shakeup of Google’s structure saw it rebrand itself as new holding company ‘Alphabet’ whose largest subsidiary would be Google. Shares in the tech behemoth went up 5% in after-hours trading.