Asian markets weaker this morning, as Chinese growth concerns continue to weigh on sentiment. The Nikkei was the regions’ worst performer down almost 2%. S&P have said that they see a “significant chance” of a ratings downgrade for India.
In Europe, Fitch have said that they see the potential for further downgrades in ratings, but the ECB’s commitment reduces the risk for certain countries. According to the Greek finance minister, International lenders are considering giving Greece 2 more years to reach their budget deficit reduction targets. European futures are looking unchanged to slightly lower, whilst there was some further weakness in the Euro this morning but found support at the crititcal level of 1.2835.
In the US markets closed at their lows last night, Alcoa released better than expected results with an EPS of 3 cents (vs breakeven forecast), for data today look out for wholesale inventories and the Fed’s Beige book.
Philip Ball | Sales and Trading