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

UK 100 Index called to open -10pts at 6725 with the recent bounce having plateaued around 6735 after successfully filling the gap down from two Monday’s ago but unable to break above the trend of falling highs from end-May. While 9-month rising support is still valid, the 6-week downtrend is too. Watch levels: Bullish 6760, Bearish 6690.

The negative opening call stems from political uncertainty related to Greece’s latest bailout deal and Grexit avoidance (for now) with Greek PM Tsipras having returned to a mutiny within Syriza’s ‘humiliated’ ranks and speculation rising that he and his party may resign, thus toppling the ruling coalition.

While an interim technocrat government would take over (as has happened in the past), another general election means the risk of another electorate rejection of austerity as in January and in-line with the resounding ‘No’ vote from the recent referendum a rejection of the current bailout deal being finalised.

Note the urgent need for Athenian parliamentary approval of the bailout deal on Wednesday and that of Eurozone partners thereafter to secure bridge financing as Greece falls further into arrears with the IMF and approaches a payment to the ECB on Jul 20 while also needing to pay workers from now dusty dry coffers.

US markets closed positive, echoing gains in Europe, with relief on a Greece deal, some welcome progress with Iran’s nuclear agreement (watch Oil) and despite attention reverting to the timeline on a US rate rise. Note the S&P500 delivering its best 3-day advance this year with Technology and Consumer name benefiting most.

Asian stocks mostly higher again with yesterday’s quasi-deal between Greece and creditors (an agreement to try to agree on how to implement agreed upon agreements) spilling over into the region. The outperformer is Australia’s ASX which posted gains with the assistance still highly influential mining stocks on the back of a bounce in the iron ore price (back above $50/ton).

Meanwhile, Australian business confidence (June) hit its highest level since the federal election, seemingly at odds with a widespread reluctance to invest with businesses demanding high rates of return to counter record low interest rates.

Japan’s Nikkei up for the third consecutive day as the safe-haven Yen remains weak (good for exports) with Greek-deal inspired risk-on mentality driving capital back into equities.

China’s Shanghai Composite volatile and still down 20% from dizzying pre-burst highs hit on 12 June. Conveniently consensus–beating trade data helping to allay fears of economic collapse as a resurgent US Dollar off the back of US interest rate timeline chatter, courtesy of the Fed, puts pressure on commodities. Hundreds of shares still suspended from trading while it remains anyone’s guess as to whether the market will hold firm after draconian stalling measures are relaxed.    

Oil prices on a slippery slope this morning as we await confirmation of a deal between Iran and Western powers on its nuclear programme, the result of which likely to include a tidal wave of Crude swamping the oil markets, adding to global oversupply. Both Brent ($57) and US Light ($51) now broken down below support at rising lows since 7 July.

Gold still moving into the apex of converging highs and lows having lost $9 since yesterday’s open. Talk of a Greek deal and now an Iranian deal cooling market tensions, but gold hasn’t been performing in its usual role of safe-haven of late. The yellow metal’s momentum indicator found support at rising lows that could take it positive today. Currently $1154.

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

• Bazalgette consortium awarded preferred bidder for Thames project
• ITE Group says Q3 trading in line with expectations
• Dairy Crest says Q1 performance of cheese and spreads businesses as expected
• Johnston Press sees FY profit slightly below market expectations
• Carillion awarded 80 mln stg BP contract in Oman
• Russia's Polymetal says Q2 revenue down 10 pct
• Dragon Oil says H1 avg realised crude oil rate at about $44/bbl
• Coms Appoints Mark Braund as CEO, Spencer Dredge as CFO
• Euromoney acquires 10 pct equity stake in Estimize
• Tethys Petroleum's biggest shareholder to subscribe to 100 mln shares
• Carillion says on track, order pipeline remains strong
• Recruiter Michael Page posts 10.8 pct rise in first half profit
• AstraZeneca says U.S. FDA approves lung cancer drug