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

UK 100 Index called to open -10pts at 7515 having traded fresh overnight lows of 7515 shortly after 7am. Having fallen from highs of 7547 to break down from support at yesterday’s lows of 7520, the index has found tentative support at 7510. Bulls will be hoping for the bounce to continue, leading to a break above 7528 to challenge falling highs resistance at 7535. Bears on the other hand will be hoping 7510 gives way for a return to 7500 to test 6-week rising lows support at 7495. Watch levels: Bullish 7535, Bearish 7500.

A negative opening call comes following a weak lead from US and Asian equity markets, while the US dollar trades a fresh post-election low and Sterling maintains yesterday’s rally, both negatively impacting the UK Index ’s army of foreign earning components. However, a rebound for commodities (ex-Iron Ore) is helping to stem losses, while Crude Oil has ticked higher in early morning trading.

With a lack of top-tier macro data and corporate releases expected today, investor sentiment throughout the day will be driven by the UK election as political parties on both sides of the aisle ramp up campaigning as they reach the home straight, while polls will be eyed to see if the Labour lurch can continue or if Theresa May's Conservatives have built on their lead.

Asian equity markets are mostly lower overnight as falling Crude Oil prices and macro data hurt major bourses. Japan’s Nikkei is almost 1% lower as cash earnings return to growth, subsequently strengthening the Yen to the detriment of the index’s exporting names, while Australia’s ASX is 1.5% lower as Energy names and Financial names suffer, the latter as the RBA holds fire on interest rates. Hong Kong’s Hang Seng is the notable outperformer, up 0.3% as all sectors ex-Energy rise.

US equity markets retreated from record highs yesterday as investors eyed the high risk events of this week, however remain within touching distance of highs. All three major bourses fell by less than 0.2%, with the Dow Jones outperforming despite Apple weighing following its new product launch, while the S&P500 fell by almost 3 point as Utilities dragged and the Tech-focused Nasdaq underperformed.

Crude Oil prices continue to remain under pressure as investors weigh up the possible impact of ongoing Gulf State tensions with Qatar. Global benchmark Brent Crude continues to trade $50 despite ticking higher as European traders come online, while US Crude struggles to overcome $47.50.

Gold has broken out from the 11-month falling highs resistance that had hindered the precious metal as the US dollar trades a fresh post election low and investors seek safe-havens ahead of Thursday’s high risk events. Trading at $1288, a 6-week highs, bulls will be looking for a return to 2017 highs of $1295 while bears will hope a US dollar recovery caps gains.

With a lack of top tier macro data, in focus today will be polls and speeches from the UK general election campaign trail. Polls conducted over the weekend show increasing divergence (Survation: 3 Jun, Conservative 1-point lead; YouGov: 29 May-4 Jun, Tories +4pts; ICM: 2-4 Jun, Tories +11pts), which will inevitably lead to one (or more) of the pollsters calling another political event incorrectly on Thursday. Again.

Subsequently, markets will be looking for polls released today to provide some clarity for a clear consensus winner and victory margin to emerge with only two days to go. Meanwhile, Theresa May and Jeremy Corbyn will continue their own personal tours of the country, with soundbites on topics including security, Brexit and the economy all likely to pop up throughout the course of the day.

Datawise, the only releases of note are Eurozone Sentix Investor Confidence (9:30am), expected to show a marginal increase from May, Eurozone Retail Sales (10am) is forecast to remain at a 2017 high of 2.3% annually, despite continuing to slow from February’s highs in April, and US IBD/TIPP Economic Optimism (3pm), seen increasing in June after a 3-month pull back.

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

• Countrywide says CFO Jim Clarke to step down
• AO World full – year revenue up on strong online sales
• Convatec raises £805m through placing
• De La Rue names Bryan Gray as chief operating officer
• Ryanair Holdings says May traffic grows 11% to 11.8m customers
• Astrazeneca says prices $2bn bond issue
• Genel Energy says Taq Taq production continued to fall in 2017
• Easyjet May passengers rise 9.5% to 7.5m
• Premier Foods issues £210m senior secured floating rate notes
• Aggreko finance chief resigns; to leave within a year
• Flybe Group signs agreement with Eastern Airways (UK) Ltd
• London copper supported by softer dollar, growth concerns cap gains
• Gold hits more than six – week high as dollar, stocks slip
• Oil prices slide over worries Middle East rift will undermine output cuts