25 July 2012: Equity futures slide, German private sector under pressure

Markets– Stocks futures slide, Commodities rally ended: Global equities are set to slide further, partially owing to poor results from Apple, who lost 5.1% on its share.
•    Stocks: FTSE All World fell 1%, as FTSE Eurofirst slipped 0.5%; In Asia, FTSE Asia Pacific stemmed its losses to 0.1% but Tokyo’s Nikkei fell 1.20%; S&P 500 closed with a loss of 1%; FTSE 100 lost 0.63% to 5499
•    Currencies: Euro touched a fresh low at $1.2051; Sterling against dollar was unchanged at $1.5618
•    Debt: The German Bunds have gained 6bp to sit at 1.23% while US 10-years lose 5bp owing to demand for safe havens at 1.38%; Spanish bond-yields shot up again to 7.62%
•    Commodities: Brent Crude is down 0.4% to $103.71/barrel; Copper lost 0.6% to sit at $3.36/pound; Gold advances 0.1% to $1582/ounce

Global Economy

•    German private sector tension mounts: The likelihood that Europe has slipped into recession again has increased as effects are being felt in some of the stronger eurozone economies too. During July, the contraction in private sector in Germany was the quickest in 3 years. Germany’s robust GDP had allowed all of eurozone to grow in Q1, but Q2 results might not be that promising.

Companies

•    Apple misses targets, stock loses 5%: Ahead of the new iPhone, Apple has failed to meet analyst expectations, as its figures show a slowdown. The stock slid over 5% in after hours trading. Apple’s revenue was about $35 billion compared to analyst estimates of $37.2 billion.

•    Tough market conditions squeeze Macquaire: The Australian IB, Macquarie, is set to register a back to back annual loss on its cash equities. Macquarie lost A$194 million in year to date June 2012.

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