Apple ship­ping de­lay takes shine off world­wide rally

Irish Independent - Business Week - - BUSINESSWEEK -

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.

While a broadly-weaker yen pushed Tokyo higher, MSCI’s main in­di­ca­tor of Asian shares out­side Ja­pan fell back from a 10-year peak and Europe’s main mar­kets were f lat.

Apple sup­pli­ers in­clud­ing AMS and Dia­log fell by 1-3pc in morn­ing trade in Europe, with traders cit­ing the later-than- ex­pected Novem­ber 3 ship­ping date for the new iPhone. Bri­tish semi- con­duc­tor firm IQE Plc sank more than 6pc.

Apple shares, which fin­ished with a small loss on Tues­day, fell an­other 0.4pc in pre-mar­ket trade. Wall Street over­all was seen open­ing slightly lower.

“It would ap­pear that a run­ning start to the week and fresh record highs in the S&P 500 has proven a lit­tle much for some traders, with profit tak­ing seen ahead of Wed­nes­day’s open,” said Craig Er­lam, an an­a­lyst with on­line bro­ker Oanda.

The pan-Euro­pean STOXX 600 dipped 0.1pc 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 165pc year-to­date.

“The eco­nom­ics of the Apple an­nounce­ment are in­ter­est­ing be­cause it will re­ally test this the­ory that inf la­tion 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 inf la­tion numbers on Thurs­day.

Bri­tain’s pound hit a oneyear high above $1.33 and a six-week high on a tradeweighted ba­sis be­fore fall­ing back af­ter weak wage data that may un­der­mine any threat the Bank of Eng­land might make about rais­ing in­ter­est rates.

Af­ter a soft start, oil prices were around half a per­cent higher af­ter the In­ter­na­tional En­ergy Agency (IEA) said the global oil sur­plus was start­ing to shrink due to ro­bust global de­mand and an out­put drop from Opec and other pro­duc­ers. (Reuters)

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.