Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires

UK 100 called to open -30pts, with Asian shares lower following much-watched Apple’s Q3 results missing at both the top (revenues) and bottom line (profits) after the US close. With European and US bourses having already closed in the red on account of US corporate earnings disappointments and Eurozone break-up fears (Greece struggling with restructuring, Spain borrowing costs skyrocketing, contagion to Italy), poor results from the iPhone manufacturer saw poor sentiment deteriorate further.

Having cut the outlook on the Eurozone core (Germany, Netherlands, Luxembourg) to negative the prior evening, ratings agency Moody’s kept up its work rate by doing the same for Europe’s bailout fund the European Financial Stability Fund (EFSF). This added to the Eurozone fears with approval for the region’s new bailout fund, the European Stability Mechanism (ESM), being held up by German lawmakers until at least September.

In contrast to the barrage of negatives, an IMF report suggests the Chinese economy making a soft landing, despite facing significant downside risks, with policy makers prepared to enact more stimulus if the global economic situation deteriorates further.  The Bank of Japan (BoJ) offered similar commentary regarding stimulus and world growth.

Overnight, macro data from Asia mixed, with Japan reporting an unexpected trade surplus. Australian Consumer Price growth was a touch slower than expected. Corporate Results out this morning in UK and Europe include BT, Capita, Tullow Oil, Daimler, British American Tobacco, ARM holdings.

With the poor PMI data from Europe yesterday, of interest today will be the Germany updating on its IFO business confidence surveys. Consensus expects deterioration. UK GDP is unlikely to be a sentiment boosting affair, with expectations for growth to have remained negative for a third straight quarter (you only need two for a technical recession).

Thereafter UK CBI trends update and US new home sales will update on consumer sentiment on both sides of the pond. UK 100 Pharma giant GlaxoSmithKline updates on Q2 financials at midday.

The deluge of US corporate results continues with Ford, Motprola, Pepsico, Caterpillar, Boeing, Conocophilips, Northrup Grumman, Corning, Wellpoint and Visa updating on quarterly financial performance.

Overnight Macro Data: (Source: Reuters/DJ Newswires)

• Japan               Merchandise Trade Balance              Better
• Aussie              Conf Board Leading Index                  Improved
• Aussie              Consumer Price growth                      Worse
• See Live Macro calendar for all details

UK Company Headlines: (Source: Reuters/DJ Newswires)

• EasyJet sales rise as consumers flee poor weather
• Yell says review may result in dilution of shareholder interests
• British American Tobacco sees good earnings growth in 2012
• Essar Oil UK agrees new arrangements for Stanlow
• Lansdowne Oil & Gas – Barryroe Resource Update
• ARM Holding outperforms industry to beat forecasts
• Lower precious metals prices dent Johnson Matthey Q1
• BT cuts costs to offset revenue slide
• Rolls-Royce wins £70m of contracts to power drillships
• E2V Technologies says Q1 trading slightly below forecasts
• Marston’s says profits in line with expectations
• Ophir Energy says finds more gas offshore Equatorial Guinea
• Botswana Diamonds recovers first gem at Libongo project

Morning Press Selection:

• Politics is adding to Spanish woes – FT.com – Editorial http://on.ft.com/PF7OCT
• Germany backs Spanish austerity plans – FT.com – Europe http://on.ft.com/MURFVI
• Brussels patient despite Spain pressures – FT.com – Brussels http://on.ft.com/OzP5no
• Death of ‘risk on, risk off’ behaviour – FT.com – Markets http://on.ft.com/PTc1iM
• The parable of the ox – FT.com – Columnists http://on.ft.com/NIA8SK
• A rapid fall in the euro can save Spain – FT.com – Opinion http://on.ft.com/MFGLYR
• France the bellwether for the eurozone – FT.com – Markets http://on.ft.com/OzNZbk