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

UK 100 called to open +60pts at 6320, which extends the current uptrend to 6 days and above the key 6300 level. The Bulls will hope that 6300 now serves as support for any weakness with further assistance via a 6-day trendline of rising lows. The Bears will be hoping that 6300 is swiftly breached to the downside and that further weakness sees it retrace towards 6000. Watch levels: Bullish 6335, Bearish 6280.

Calls for a positive European open follow a cautiously mixed session in Asia which is in contrast to a negative US finish that comes as UK voters decide whether to stay in the European Union. Overnight polls still suggest the result could be very close although a late tilt towards Remain has helped bolster bullish sentiment in early trading on the hope that the status quo is maintained and an uncertain outlook will not prevail.

Japan’s Nikkei is outperforming thanks to the Yen holding below recent highs, the currency in less demand as a safehaven from Brexit concerns and so exporters getting the usual competitive boost. Australia’s ASX is positive, but only just as the UK voting outcome looms. A weaker USD is not benefiting all commodities and Oil back from its its high is weighing on Energy. Note Chinese stocks underperforming, posting losses to buck the positive trend elsewhere.

US markets closed in the red on a Brexit read-across with two polls at yesterday’s UK close indicating a lead for the Leave camp just 15 hours before voting begins. A smaller than expected drawdown in US crude inventories also rattled the oil markets a little, for what it’s worth (though more on oil below), but the overarching subject of the day is undoubtedly the UK’s EU referendum. Expect US markets to react every bit as much as the UK’s as the day goes on.

Oil took somewhat of a round trip, selling off on a smaller than expected drawdown in US inventories yesterday afternoon yet subsequently recovering as the new Saudi oil minister commented on the global supply glut. Khalid al Falih suggests he and his band of oil chaps would begin ‘balancing supply and demand as the market recovers.’ This, at least qualitatively, could well set $50 as the new foundation on which crude prices could build.

Gold has found resistance at falling highs from 16 June. Note safe-haven demand likely to fluctuate considerably through today and overnight as volatile and market-moving exit polls update us as to the progress of the vote. Keep an eye on USD strength too (i.e. GBP/USD).

Gold has found resistance at falling highs from 16 June. Note safe-haven demand likely to fluctuate considerably through today and overnight as volatile and market-moving exit polls update us as to the progress of the vote. In the case of a Brexit, safehaven demand would likely override any hindrance via USD strength which results from a GBP sell-off.

In terms of data, given the importance of Europe right now from a political standpoint, the preliminary Eurozone PMI Manufacturing & Services data will be closely watched. And while the region’s prints are seen largely unchanged in June, France likely remains stuck in contraction for its manufacturing component.

In the afternoon, watch out for Chicago Fed National Activity Index and Kansas City Fed manufacturing, both forecast flat for the latest month’s data although US PMI Manufacturing may be on for a small gain in June. US New Home Sales are seen lower in May while the US Leading Index may barely have grown in May.

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

• Tesco reports second straight quarter of UK sales growth
• Tesco comfortable with analysts' 2016-17 profit consensus
• DS Smith FY adj oper profit +16 pct on constant currency
• Petroneft reports FY loss after tax of $8.5m
• AstraZeneca confirms CDC interim recommendation on flu vaccine
• Oil firm DNO receives second May payment from Kurdistan government
• Meggitt wins $21m contract for F-16 canopy actuation
• Cobham wins contract for light Inmarsat Satcom
• Finland's Wartsila buys American Hydro from Weir
• AstraZeneca takes $80m hit as U.S. spurns nasal flu vaccine
• Asian brokers hike trading margins on Brexit volatility fears