Apple released quarterly earnings last night that missed their mark this as IPhone sales showed that real competition is starting to have an effect. Bourses globally struggled yesterday and they appear set to go into red today as well as pressure remains on investors. Apple Inc under strain is a big enough story by itself but because it makes up a large amount of the NASDAQ index it must be monitored for the knock on effect it could cause in equities. Technology stocks have been relatively strong within the U.S. equity market and if Apple starts to be perceived as weakened it could prove to be the catalyst for ugly pricing. Last night’s results should serve as a warning sign for those who are entering the stock market based solely on speculation. There are good values within equities but research, patience, and a bit of luck are needed at this juncture.
The EUR continued its slide against the USD yesterday and it is approaching a rather important psychological juncture of 1.20. If the Single Currency should fall below that mark against the Greenback it will bring on a new frenzy of ‘the end of the EUR is approaching’ sermons. Only problem is that many folks are about two years late to this party. The EUR has shown all the signs of a currency that should be under the microscope for a long time. Clearly trading is not a one way avenue and there will be movements upwards periodically to take advantage of. It must also be remembered that the Federal Reserve in the U.S. is not at all keen to see the demise of the EUR. Afterall the U.S. would rather keep the USD weak. However with so many seeking preservation of assets the Greenback is going to continue to find takers as global markets weaken.
Preliminary GDP will come from Germany today along with New Home Sales from the States. Commodity prices should be watched closely, particularly Crude Oil which has traded lower recently and may still find some downward pressure. Staying on the physical commodity subject the AUD may be an interesting sell against the USD. The AUD has had a fairly good month of trading versus the USD as commodity prices showed some ability to rise but with questions abounding again about a global recession it could be time to look for some lose of value from Australia.