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

UK 100 Index called to open -165pts at 6590, having gapped below prior 6630 lows to test levels last traded mid-January. While off its worst overnight levels of 6513 (-240pts), the sharp drop maintains the downtrend from end-May and accelerates declines from early April highs. Beware today’s spinning top candlestick of indecision so far on the daily chart. Watch levels: Bullish 6640, Bearish 6495.

The negative opening call comes after Greek bailout talks broke down yet again, this time at a time when markets would really have preferred it if they hadn’t - UK Index gapped down over 160pts, DAX 505pts and Wall St. 245pts after Greek banks shut their doors for this week while having capital controls imposed by Athens – notably a €60 daily limit on cash withdrawals to avoid a catastrophic run on the banks which do not have the cash to dispense - ahead of a 5 July referendum that is essentially on whether or not Greece remains in the single currency bloc.

It’s a straight ‘yes or no’ situation now. We’ve got a Creditor refusal to extend the bailout for a further five days, the ECB keeping the current Emergency Lending Assistance (ELA) limit unchanged and a likely technical default on Tuesday if the IMF is not paid. But don’t panic, apparently. The Euro has plunged to its lowest level against the (global reserve currency) US Dollar since 2 June while losing 2% against the safe-haven Yen. Greek PM Tsipras (elected by the people) essentially chickening out and asking the people to take social responsibility for a Grexit?

US equity futures following Europe’s cues to post gaping losses with even the Fed now taking a break from US interest rates to wade into the fray – Jack Lew issuing a plea for creditors to consider debt relief for Greece and NY Fed President Dudley saying the implications of a Grexit could be harsher than many appear to believe. Euro membership now potentially reversible?

Asian markets nursing losses of 2-3%, largely in response to the news of a Greek referendum decision on creditor proposals, the result of which could decide fate of Greece within the Euro, but also from continued falls by Chinese equities (now in a bear market, -20%) as weekend stimulus taken as confirmation of the nation’s growth problems.

The Shanghai Composite still correcting as its equity bubble deflates and markets shrug off monetary stimulus from another PBOC cut to banks’ Reserve Requirement Ratio (RRR) and focus more on structural issues (debt, property, margin fuelled trading) and the weekend’s slowing trend in industrial profits growth.

Japan’s Nikkei dented by Greek fallout, mixed macro data (industrial production data disappointed, Retail Sales pleased) and the JPY strengthening on safehaven seeking as the EUR is dumped. Australia’s ASX hurt generally by Greek concerns (banks) but also by mining stocks which are held back by intensifying of China worries.

Today’s macro-data takes in Eurozoneconfidence prints, GermanCPI and UShomesales and Dallas manufacturing activity. Check the live Macro-Calendar for a full rundown of everything not-Greece (as if you would).

Gold has rebounded from recent $1170 lows and jumped above $1180 but not as much as might be expected. A stronger USD still hinders demand for the safehaven as does continued failure to shine amid recent macro/geopolitical uncertainty. The metal is back above 20-day moving average, but 50- and 100-day MA hurdles may await around $1190-5.

Crude prices took a tumble with the USD breaking out above 96 resistance (re-visiting as we write to test support at the same level) – clearly the main driver for the commodity this morning – while a lower than expected drop in US operational rigs (has the number now bottomed?) also weighed on prices. WTI currently around $58 while Brent sitting around $62, both pushing higher pre-market open.

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

• Quindell says to publish FY audited report by June 30
• Lamprell sees 2015 results heavily weighted towards H2
• Gulf Keystone says continues to produce in excess of 40,000 bopd
• Immunodiagnostic Systems Holdings says CFO to leave today