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

UK 100 called to open -15pts at 6190, but well off its overnight lows of 6140 and several attempts at 6200 suggest appetite for a breakout to maintain the recovery uptrend of the new trading week. Bullish 2-day ascending triangle pattern? Bulls are watching for a break above 6200 to open the door for a rally on to May channel highs of 6300. The bears are watching for any breach of overnight rising lows but would likely have to wait for a breakdown at 6150 to be convincing of a sentiment reversal. Watch levels unchanged: Bullish 6210, Bearish 6155.

A negative European open comes in spite of another positive session for Asia which rose on the back of gains by stateside bourses. This comes as a pair of overnight Brexit polls add another dollop of spice to the referendum build-up with conflicting results about which camp is leading. This vote looks very likely to go right down to the wire. Prepare yourselves for a very long night! There is also talk of another terrorism alert in Brussels this morning.

Note George Soros warning about a huge slump in the pound (20%) if the UK votes Leave - bigger than the one that made him rich on Black Wednesday in 1992  when the UK withdrew the pound from exchange rate mechanism - ERM. Investors also continue to digest the strong gains of yesterday whilst preparing themselves for any potential nuggets of information on US rate rise trajectory via testimony from Janet Yellen this afternoon.

Japan’s Nikkei benefiting from a Yen back of its 22-month highs, while Chinese stocks post small gains to make it a three-day run of gain (longest since April). Note Australia's ASX underperforming Japan as a stronger USD ahead of Yellen's testimony acts as a hindrance for the commodity space, holding Gold back from safehaven gains derived from investor anxiety. Are we readying for a market panic-inspired Gold breakout from its sideways $1280-1300 range? Or is a complex head and shoudlers top reversal pattern suggesting good news on the way for risk appetite?

Note that although Oil prices resumed their 2016 uptrend, they have already turned back from another attempt at the $50 hurdle on renewed Brexit fears and ahead of US API stockpile data this evening and EIA numbers on Wednesday.

In focus today, amid another quiet data for macro data, will be German ZEW Surveys seen giving up a little ground in June, and it may be the same for UK CBI Trends on Orders and Selling Prices.

Thereafter, we expect more Brexit opinion polls with a ComRes phone poll potentially out during they day. The fallout from overnight YouGov and ORB polls which gave - surprise, surprise - mixed messages may also have a bearing, with investors hungry for each and every update by pollsters and bookies regarding the most up to date voting intentions and outcome probabilities.

In terms of announcements, watch out for the German Constitutional Court’s ruling on the legality of the ECB’s controversial but yet-to-be-employed bond-buying programme (Outright Monetary Transactions (OMT); its backstop allowing it to buy the sovereign debt of troubled Eurozone nations directly in markets as part of its July 2012 ‘whatever it takes’ vow to keep the Euro alive.

Speakers today include ECB President Draghi who is making an Introductory statement at the Hearing before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament in Brussels. Any comment on the German ruling or reiteration that he’ll do whatever it takes?

Thereafter, it’s all eyes on the semi-annual testimony of Fed Chair Janet Yellen who speaks before Senate Banking Committee in Washington. It is widely expected that she stick to the dovish script used at the latest FOMC press conference and, with the UK Brexit referendum looming, UK PM Cameron will be hoping she mentions the potential event-risk for financial markets.

What the Fed’s Powell has to say in the evening will also be of interest, although as a Fed governor he tends to stick close the party line and what the Fed Chair herself says. Later in the evening we get also get the penultimate UK Brexit TV debate (Wembley, live on BBC 1) with London Mayors past a present Khan and Johnson representing the Remain and Leave camps respectively. Expect it to be lively.

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

• Chemring group H1 revenue +11.4% to £180.1m; warns on profits
• British engineer Senior warns of lower H2 revenue at Flexonics, to focus on costs
• Stock Spirits Group announces special dividend
• Just Eat appoints ex – Sage exec Paul Harrison as CFO
• Saga says on track for Jan 2017 targets
• Whitbread confident of making good progress this year
• BHP Billiton says coal business targeting additional $600m gain by 2017 end