Ap­ple takes shine off stocks rally from global mar­kets

Financial Chronicle - - COMPANIES - PA­TRICK GRA­HAM

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 hit a 10year peak, but Europe’s main mar­kets all dipped in early trade.

Ap­ple sup­pli­ers in­clud­ing AMS, IQE Plc and Di­a­log fell by 2-5 per cent at the open­ing, with traders cit­ing the later than ex­pected Novem­ber 3 ship­ping date for the new iPhone as the main rea­son.

That fol­lowed a small fall in Ap­ple shares 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 dipped 0.3 per cent as weak­ness in chip­mak­ers was com­pounded by a drop in miners.

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 per cent 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 US 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 in Asian time be­fore eas­ing back as traders awaited US in­fla­tion num­bers on Thurs­day.

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

“Now it’s ‘wait and see’ for US 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 US crude stock­piles.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.