Poorly received earnings from Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) soured the mood on what had been a rebounding US session last night, with that latest bout of bearishness filtering its way through the Asian markets to the European open.
The FTSE plunged 1.3% after the bell, not only tumbling under 7000 but returning to the 6900-grazing, 7 month lows struck on Thursday. All of the key sectors were in the red, including some serious losses in from the index’s banks, with RBS (LON:RBS) dropping nearly 5% after it revealed it had set aside £100 million to deal with the ‘more uncertain economic outlook’ alongside another £200 million to cover the mis-selling of PPI.
The eurozone was no better. With the Italy budget issue still hanging over its head, the region was bloodied once again; the DAX dropped 190 points, slipping back under 11150, with the CAC shedding 1.8% to sit the wrong side of 4950.
Given that the slightest thing sets the markets off at the moment, it is going to be interesting to see how they deal with this afternoon’s first look at the US third quarter GDP figure. Analysts are expecting a slowdown from 4.2% in Q2 to 3.3% in Q3, a decline that may only cause further problems at the end of a tiring and tricky week.
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