Global equities tumbled on disappointing earning reports from US. DJIA closed down -181.12 pts, or -1.0% at 17919.29 while S&P 500 closed down -9.07 pts, or -0.43% at 2119.21. Asian equities followed with Nikkei trading down over -210 pts, or -1.0% at the time of writing while HK HSI is dropping over -300 pts, or -1.1%. Sentiments were weighed down by disappointing IBM (NYSE:IBM) and United Technologies (NYSE:UTX) earnings. Although Apple (NASDAQ:AAPL)'s earnings exceeded market expectations, its shares slumped -7% in after market trade as sales of iphone and ipad missed forecast whilst revenue guidance for the next quarter fell short of expectations. Dollar followed and weakened broadly and is now the second weakest major currency this week, next to Sterling. Elsewhere, gold stay soft has just lose 1100 handle again whole crude oil is struggling around 50.
In Eurozone, S&P upgraded Greece's credit rating by two notches to CCC+, up from CCC- yesterday. Nonetheless, the rating remains firmly in junk territory. The rating agency now said that the chance of Grexit was now below 50%. But risk was still high "if the Greek government doesn't successfully implement what looks to be an ambitious program." Meanwhile, ECB will hold a conference call today to discuss the Emergency Liquidity Assistance for Greece, which limit is now at EUR 89.5b. Greece parliament will vote today on the second set of reforms needed to secure the new three year bailout.
Released from Australia today, CPI rose 0.7% qoq, 1.5% yoy in Q2, missing expectation of 0.8% qoq, 1.7% yoy. CPI trimmed mean rose 0.2% qoq, 2.2% yoy versus expectation of 0.6% qoq, 2.1% yoy. CPI weighted mean rose 0.5% qoq, 2.4% yoy versus expectation of 0.6% qoq, 2.3% yoy. RBA governor Glenn Stevens said that further rate cuts is "on the table". But he emphasized that "it is not quite good enough simply to say that evidence of continuing softness should necessarily result in further cuts in rates, without considering the longer-term risks involved." Also from Australia, Westpac leading index rose 0.0% mom in June.
Elsewhere, Japan all industry index dropped -0.5% mom in May. BoE minutes will be the main focus today. BoE governor Mark Carney sounded hawkish in recent talks and noted rate hike might come in earlier than expected. Today's minutes might reveal what other MPC members think. From US, house price index and existing home sales will be released.