US stocks were higher yesterday as Apple once again shattered analysts' expectations after reporting a 59% jump in revenues against the previous year to $39.2 billion. Earnings per share were more than $2 a share higher than consensus forecasts, reaching $12.30. Apple's shares surged by 9% yesterday to $610 a share, erasing most of the declines over the last two weeks after an explosive start to the year which has seen it add more than 50% to their market value.

US markets declined sharply in late trading after the Federal Reserve left monetary policy unchanged, whilst providing no fresh hints of a further round of quantitative easing. Gold fell as investors in the yellow metal had hope of another round monetary easing before 2012. The Euro hit an eleven month low against the dollar as the single currency came under renewed pressure over the Europe bail-out fund and Berlins persistently firm stance over boosting its firepower. Moreover, doubts are beginning to appear over the International Monetary Fund’s ability to increase their firepower; Japan’s Finance Minister suggesting yesterday that they remain uneasy over the prospect of providing more funding into the IMF without improved clarity over the EU.

The Eurozone rescue plan looks as precarious as an ancient Greek Parthenon in disrepair – George Papandreou, the Greek prime minister, is doing his very best to remove the pillars of support by calling a referendum on a second bail-out package. Wider implications of such action were evident in the markets yesterday; French banks led the declines suffering their largest declines in nearly 20 years. Moreover the spread between Italian government debt and German bunds hit fresh highs of over 4.5%. Nevertheless, domestic economic output rose 0.5, with gross domestic product beating forecasts suggesting slower growth not recession.

We suspect markets will be driven largely by the number of important economic news released in the week ahead. Monetary policy meetings in US and Japan are likely to increase volatility in the near term.

Global markets remain in a fragile state as persistent Eurozone worries linger. Early this week spreads against The German Bund hit 466 basis in Spain and 480 points in Italy; whilst spreads in the previously bailed out countries for Ireland and Portugal were 650 and 945 points respectively. While Spain and Italy will have greater resolve than the latter two countries this can’t go on indefinitely, their yields appear to only be going one way. One method to reverse this would be for the European Central Bank to commit to acting as lender of last resort removing the fear of default and improving liquidity.

Markets anxiously await news from the Eurozone leader summit in Brussels today. Uncertainly going into the meeting remains widespread with global markets declining on Tuesday. Expectation that Europe's leaders will not reach an agreement to solve the sovereign debt crisis today sent French and Italian bond yields higher yesterday.