Asian markets are sharply lower this morning on renewed concerns over the Eurozone and a couple of notable earnings disappointments. HTC fell around 7% after releasing revenues below forecasts and Hitachi fell 6% after lowering their operating profit forecast for the year by some 13%.

European equity futures are looking slightly higher in early trade after suffering heavy losses yesterday, as Spanish and Italian bond yields rose over concerns on political stability. The Euro has sharply fallen to trade back below the 1.35 level. We have PMI services data due from the UK and the major European countries. UBS, KPN, BG Group, BP and ARM are among names reporting out of Europe today.

US markets were lower yesterday despite better than expected economic data. Today, Emerson (62c), Kellogg (66c) and Walt Disney (76c) are expected to release earnings, and look out for ISM non-manufacturing.

Philip Ball | Sales and Trading