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

UK 100 Index called to open +55pts at 6575, having found support at 6500 and bounced along with US and Asia bourses overnight. Nonetheless, another fresh low coupled with 6000 resistance maintains the downtrend and keeps the index below that key 6630 June 18 low. Watch levels: Bullish 6610, Bearish 6490

The positive opening call comes after US stocks posted gains yesterday to close in the green on hopes of a Greek deal that would avoid the worst case scenario, the almost-worst case scenario having already been largely priced in.

Optimism risen after PM Tsipras returned to negotiating table, if only to ask for a fresh 2yr loan to tide country over, and some polls suggesting waning support for 'No' vote in Sunday's referendum as capital controls begin to bite. It's now a choice between national pride and much pain or continued help and staying in Euro.

Suggestions are that fresh Greek proposals are now closer to those of Creditors and discussions will continue today. Investors still hopeful of positive outcome after current bailout expired and it missed IMF payment which doesn't constitute a default. IMF debt is financial assistance and not private debt, and not rated by ratings agencies, so Greece is in arrears and can't have any more IMF help until those arrears are cleared.

The Greek government is due to present yet another set of proposals that will be discussed Thursday, while Fitch waded in to follow S&P by downgrading Greece’s credit rating further into junkland (to CC from CCC).

In the US, the Fed’s Fischer gave a hawkish outlook, saying the US can’t afford to wait for conditions to be fully met before hiking interest rates, but that every effort would be made to avoid major market shocks. Let’s hope so, because the fact is that many of the younger Fed employees (and BoE for that matter) tasked with looking at when to raise rates will never have experienced anything other than near zero borrowing costs. A naively executed tightening of policy could have serious ramifications.

Asian markets higher overnight after gains on Wall Street from hopes of Greece staying in the Euro bucked a weak European close. Japan's Nikkei positive helped by positive industrial  surveys and a weaker JPY while Australia's ASX is getting a helping hand from strong home approvals stats and hopes of more China stimulus.

Stocks in China giving up some of their recent bounce-back gains after lacklustre PMIs, however, these have only served to boost rest-of-world hopes of more Beijing stimulus rather than heightening fears of economic slowdown despite recent PBOC rate cuts targeting a falling stock market highlighting extent of nation's debt problem.

In focus today we have European manufacturing PMI prints taking in Germany, the Eurozone and UK (and more) this morning, while US employment change, ISM manufacturing and its own manufacturing PMI fill the afternoon slots. Consensus for all is broadly but mildly positive. As always, do check the live Macro-Calendar for a full rundown with expectations.

Crude prices lost their mojo overnight after the deadline for Iran nuclear talks was officially extended for a week (original deadline was today…), giving the two sides until 7 July to thrash out a deal that would see Tehran’s nuclear bomb programme defused in return for sanctions relief. When put like that, how likely do you think it is that Iran will stick to its side of the deal?

In any case, the effect on the oil market would be considerable in the event of an agreement, with a large amount of Iranian crude likely to add pressure to already pressured prices. Note likely impact on US shale production also. Traders expecting the best (or is it the worst?) with Brent ($63) and WTI ($58) remaining muted this morning.

Gold again bounced from fresh lows, this time from $1166, but again found resistance $1175 just above. Downtrend from 28 June remains to be broken. Alternative safehavens still in demand with USD benefiting additionally from some hawkish Fed commentary and positive US macro data.

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

• APR Energy in deal with Uruguayan co for project continuation
• Greene King full – year revenue rises 3 pct
• Saga acquires motorcycle – insurer Bennetts for 26 mln stg
• Wincanton wins new contract with UK's Halfords
• Anite FY adjusted pretax profit 22.7 mln stg vs 14.9 mln stg
• Serco reaffirms full year profit expectations