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

UK 100 called to open +85pts at 6225, maintaining its upward march from the post-Brexit lows plumbed last Friday. A solid trend of rising lows since Monday gives hopes to Bulls that pre-Brexit and 2016 highs of 6450 can be revisited. Bears watching for any test of supportive rising lows at 6200. It’s still unclear whether this is a dead-cat bounce or the real thing in terms of recovery, but with little signs of appetite for lows to be revisited, and for the bounce to have endured a third full session and put on 500pts, bodes well in terms of the worst being behind us. Watch levels: Bullish 6240, Bearish 6185.

A positive opening call comes after US and Asian equities extended the global recovery rally helped by positive data overnight as Chinese and German Consumer sentiment rose and UK House Price data showed the nation’s precious property further delivering gains in June, albeit the data likely being pre-Brexit. Asian stocks have bounced further thanks to buoyancy in UK Sterling on hopes that Brexit uncertainty will ease and in spite of terrorism rearing its ugly head in the form of a bombing in Istanbul and ratings agency Moody's downgrading the UK's banking sector.

Australia’s ASX is advancing on weak-USD inspired strength in raw materials and energy-focused names (oil  above $48; copper testing 6-week highs), and assisted by a rebound in some UK-exposed and dual-listed stocks hit hardest by Brexit fears. Japan's Nikkei higher in spite of unwelcome Yen strength which is at odds with disappointing Retail data and expectations for more BoJ intervention and/or stimulus to help an ailing economy and tame currency strength.

US bourses were buoyed by the energy and financial sectors which staged somewhat of a rebound (oversold following the preceding two sessions?). Support for sentiment is also stemming from the oil price which rose overnight with US supplies seen falling (API said so last night ahead of EIA today) and suspected outages in Norway due to strike action. Balancing things out in the US, we heard from the Fed’s Powell who said he saw Brexit headwinds for economies the world over, including the US.

Dow Jones futures are looking strong this morning, having climbed back above their 200-day moving average, however note potential for resistance to be encountered between 17450 and 17600.

Support for Gold at $1304 held yesterday and sees the yellow safe haven back up around $1320 this morning. Note the positive opening call for equities could well keep the pressure up though - Gold is still contending with 3 days of falling highs. Nonetheless, the longer term outlook seems pretty bullish given the multitude of uncertainties on the menu.

In focus today will be day-two of the EU Leaders Summit on Brexit (the one without PM Cameron) from which comments will again be sought, such as those encouraging the UK to get on with activating Article 50 of the Lisbon Treaty and commence divorce proceedings ASAP .

In terms of data, watch out for UK Consumer Borrowing data which has shown a pattern of up one month, down the next which suggests April's plunge could be followed by a bounce back in May although Brexit headwinds may complicate things. Eurozone Confidence figures (Consumer, Econ, Ind, Business) are likely unchanged in June.

In the afternoon, German inflation is forecast slightly slower in June, but continuing its improvement and escape from April’s flirt with deflation when looked at on an annual basis. June US Personal Income, Spending and Inflation are expected to have eased in May but Pending Home Sales growth may have gone negative before US Oil Inventories give us the latest Crude picture.

Note ECB President Draghi speaks again this afternoon, likely continuing with soothing words regarding the Eurozone and Brexit while this evening we have part two of this year’s US Federal Reserve annual Bank Street Tests. All are seen passing on account of post-crisis measures to bolster balance sheets and avoid instances of ‘too-big-to-fail’, but whether capital-return plans will be approved after all these years is what will be most in focus, potentially helping sector sentiment this side of the pond.

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

• Savannah and Rio Tinto extend joint venture long stop date
• Homeserve says continues to trade in line with guidance
• Qinetiq says David Mellors steps down as CFO
• Dixons Carphone says Brexit vote won't stop it growing
• UK house prices rise 5.1% on year in June – Nationwide
• ISE sale clears one hurdle for LSEG, Deutsche Boerse deal
• Bunzl says trading in line, eyes further acquisitions
• Cobham appoints new Chief Financial Officer
• Oil prices rise on Norway strike threat; Brexit shock fades