Asian markets weaker, weighed by disappointing earnings, whilst in China the HSBC flash manufacturing  PMI came in higher than expected suggesting the economy is stabilizing. In Japan, Kawasaki Heavy, fell almost 6% after the gas-turbine maker missed on their first half operating profit.

According to press speculation, the Eurozone states are set to give Greece an extra 2 years to bring its budget deficit lower. Meanwhile, BOE’s King said that they stand ready to add further stimulus if required. For economic data, look out for PMI data from across the Eurozone region and IFO data out of Germany. European equity futures are looking around 40bps firmer.

In the US, weak earnings and guidance from Dupont hurt sentiment yesterday with indices closing near levels and below the crucial 1428 level. Today we have new home sales data along with the FOMC rate decision this evening, earnings wise look out for AT&T (60c), Boeing ($1.12), General Dynamics ($1.78) and Lockheed Martin ($1.87) amongst others.

Philip Ball | Sales and Trading