Asian markets lower, as tensions over the China Sea island disputes continue to rise, as investors begin to assess the risk of damage to trade relationships between China and Japan. Japanese retail chain, Fast Retailing, fell 7% after the company said that it had closed 42 stores in China. Australia have cut their revenue forecast for iron ore by a fifth, on the ongoing slowdown of Chinese Growth.

ECBs Coene has said policy easing options for ECB include rate cut, negative deposit rate and more LTROs. Yesterday, Spanish bond yields rose to over 6% on concerns the country will not ask for further aid. Today we have ZEW survey data out from Germany. European equity futures are looking slightly lower.

 

Philip Ball | Sales and Trading