Greek parliament to vote on second tranche of reforms; Apple ‘disappointment’ weighs on markets

After a snooze-worthy Tuesday left investors comatose, there should be a bit more of interest this Wednesday with Apple-ramifications, Greek votes and Bank of England minutes (finally) worth looking at.

In a repeat performance of last Wednesday, the Greek parliament will vote on the second tranche of creditor-specified reforms, including measures to increase the efficiency of its legal system alongside the implementation of the ‘bank recovery and resolution directive’. Unlike last week, where 32 Syriza MPs rebelled against Tsipras’ ‘yes’ vote, this week’s requirements are expected to be less controversial, and should pass with relative ease.

Yet more interesting than this vote is the situation Tsipras finds himself in. Each week appears to bring with it another post-threatening obstacle for the Greek PM, and with talks circulating that Tsipras might call a snap-election in the next few months, this vote is another chance for the global public to see how stable his position actually is. For now the DAX and the CAC are in the red, likely absorbing the impact of Apple’s announcement last night, but positive dispatches from Greece could see this change as the day goes on.

The return of hefty losses in the commodities sector, with copper and gold especially hitting fresh lows, meant that the FTSE stood little chance of escaping the bearish tone that was present at the open. Whilst the UK is offering little in the way of data this morning, for once the Bank of England meeting minutes might actually be worth a gander. Following Carney’s hawkish comments last week investors are keen to see how much the Governor’s position is supported in the central bank, with at least a couple of votes expected to be in favour of a rate hike.

Despite shaky figures for Yahoo and Microsoft (the latter of which was hit by a $3.2 billion net quarterly loss), Apple was the real ‘disappointment’ of last night’s post-close earnings releases. Yet it is a disappointment that comes laden with caveats; revenue still (marginally) beat expectations, surging 33% to $49.6 billion, whilst earnings per share were $1.85 against the forecast $1.81. Sales in China, meanwhile, doubled to $13.2 billion. Yet, these figures were ignored due to the fact Apple merely sold 47.5 million iPhones instead of the expected 49 million; mix this in with a cautious outlook for the fourth quarter and investors had a fit, sending the stock 7% lower to just above $121 in after-market trading. It’s the kind disappointment that appears to have weighed on investors’ minds this morning, and just goes to show, however dazzling your figures are, expectations are everything.