In mid-morning trading the FTSE continues to struggle, down around 10 points as markets weigh up earnings data from the US.
As company after company queues up to report earnings, it is becoming increasingly apparent that the Eurozone crisis has taken a heavy toll on confidence.
Companies across the board are expecting conditions to remain difficult, as we continue to wait for a real solution to be crafted by Eurozone politicians.
Speaking of which, Spanish Prime Minister Mariano Rajoy was busy this morning, unveiling new austerity measures that will amount to €65 billion in cuts.
This runs the risk of deepening Spain’s already significant recession, but Mr Rajoy has to embark on these measures if he is to retain the support of his European partners.
The US central bank will return to centre stage this evening, as the Fed releases the minutes from its most recent policy meeting.
There remains some hope that this central bank will commit itself to further easing later in the year, and these minutes will help us to gauge how sentiment currently lies in the committee.
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