1. Most Discussed
  2. Gainers & Losers

GLOBAL MARKETS-Apple takes shine off stocks rally

Bookmark and Share
    • Apple suppliers struggle in Europe
    • Main European markets dip at opening
    • Asian stocks hit 10-year high after Wall Street gains
    • Sterling rises further
    • Graphic: World FX rates in 2017 http://tmsnrt.rs/2egbfVh

    Disappointment over the timing of Apple's iPhone X release hampered further gains for world stock markets on Wednesday after an easing of concerns about North Korea sent indices to record highs.

    With Tokyo gaining on a broadly weaker yen, MSCI's main indicator of Asian shares .MIAPJ0000PUS hit a 10-year peak, but Europe's main markets all dipped in early trade.

    Apple suppliers including AMS AMS.S , IQE Plc IQE.L and Dialog DLGS.DE fell by 2-5 percent at the opening, with traders citing the later than expected Nov. 3 shipping date for the new iPhone as the main reason.

    That followed a small fall in Apple shares AAPL.O as Wall Street surged back to record highs on Tuesday.

    "There has been just a minor retracement, hardly an indication of which way the European session will be headed today," analysts from Italy's Unicredit said in a morning note.

    "If there is anything that surprises us equity bulls, it is the almost linear nature of the (global) move without severe setbacks."

    The pan-European STOXX 600 .STOXX dipped 0.3 percent as weakness in chipmakers was compounded by a drop in miners .SXPP .

    Chipmakers have been the best-performing among Europe's tech stocks this year, accounting for a large chunk of the sector's outperformance. AMS shares have gained 165 percent year-to-date.

    "The economics of the Apple announcement are interesting because it will really test this theory that inflation is going to be weak," said Mike Bell, global markets strategist with JP Morgan Asset Management in London.

    "With the iPhone coming in around $1,000 it will be interesting to see how healthy demand is. If it's relatively healthy I think it shows that there is still quite a lot of pricing power for U.S. companies and consumers have confidence."

    In currency markets the dominant trend this week has been a recovery for the dollar and sterling. The dollar hit a 12-day high above 110 yen JPY= in Asian time before easing back as traders awaited U.S. inflation numbers on Thursday.

    Britain's pound hit a one-year high above $1.33 GBP=D3 and a six-week high on a trade-weighted basis =GBP .

    "Now it's 'wait and see' for U.S. dollar investors," said Esther Reichelt, a strategist with Commerzbank in Frankfurt. "Everyone's waiting for the inflation data tomorrow and the Fed next week."

    After a soft start in Europe, oil prices were marginally higher, with OPEC's expectations of higher demand for its crude next year countering reports of rising U.S. crude stockpiles.

    For Reuters Live Markets blog on European and UK stock markets see reuter//realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets

Before making any financial decisions based on what you read, always consult an advisor or expert.

The aim of HotCopper News is to report and comment on news in the financial and investment markets. HotCopper provides no advice on dealing in securities and is not a financial advisor. Professional advice should be sought before making any investment decisions.

Contact editor: [email protected]

To read reuters' full disclaimer click here

Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.