FTSE Spread Bets Weaken as Eurozone Crisis Hurts US Earnings Forecasts
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.
Weaker forecasts from US companies are a sign that the global economy is beginning to feel the pinch from the problems afflicting the euro.
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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Financial Market Comments from Ben Critchley, Sales Trader, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
July 11, 2012 No Comments