Asian markets are down sharply this morning, as the EU solution for the bailout for Cyprus adds to uncertainty. The Hang Seng is down around 2% on larger than normal volume and looks set to post its lowest close for 4 months.
European equity futures are pointing to between a 1.5% and 2% fall this morning after the EU proposed a levy on Cypriot bank accounts as part of the bail out for the country, with the Euro getting hit hard falling around 1.5% versus the dollar to its lowest level of the year. The news brings uncertainty for the recovery prospects for the peripheral countries ahead of key bond auctions for Greece and Spain tomorrow. Today we have Eurozone trade balance data.
US equity futures are sharply lower this morning with the S&P at a key technical support level at around 1532. Later today look out for NAHB Housing Index.
Philip Ball | Sales and Trading