Asian stocks lower again this morning, with the Hang Seng being the major underperformer 1.5% lower. Australia released weaker than expected second quarter GDP growth of 0.6%. Miners continued their recent underperformance, with Fortescue Metals falling almost 9% following yesterday’s announcement to cut capex spending. Bank of Japan’s Miyao said that risk now higher that the global slowdown will be prolonged.
In Europe, the Dutch PM has said that he won’t agree on a 3rd rescue package for Greece and will only allow Greece more time if it doesn’t cost money. European equity futures are looking flat ahead of PMI service and retail sales data. Look out for debt auctions for Holland, UK and Germany.
In the US, markets tried to rally off lows yesterday, but those minor gains off the lows have been erased after Fedex cut their Q1 EPS forecast after the close, they revise their forecast to $1.37 - $1.43 from an estimate of $1.56, the stock traded 3.5% lower after the bell.
Philip Ball | Sales and Trading