🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Apple takes shine off stocks rally

Published 09/13/2017, 08:06 AM
© Reuters. FILE PHOTO: Apple's Schiller introduces the iPhone x during a launch event in Cupertino
USD/JPY
-
US500
-
JP225
-
CBKG
-
AAPL
-
DLGS
-
IQE
-
STOXX
-
AMS
-
MIAPJ0000PUS
-
SXPP
-
ILS/UAH
-

By Patrick Graham

LONDON (Reuters) - 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 (N225), MSCI's main indicator of Asian shares outside Japan (MIAPJ0000PUS) fell back from a 10-year peak and Europe's main markets were flat.

Apple suppliers including AMS (S:AMS) and Dialog (DE:DLGS) fell by 1-3 percent in morning trade in Europe, with traders citing the later than expected Nov. 3 shipping date for the new iPhone. British semi-conductor firm IQE Plc (L:IQE) sank more than 6 percent.

Apple shares, which finished with a small loss on Tuesday, (O:AAPL) fell another 0.4 percent 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 (STOXX) dipped 0.1 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 and a six-week high on a trade-weighted basis (=GBP) before falling back after weak wage data that may undermine any threat the Bank of England might make about raising interest rates.

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

© Reuters. FILE PHOTO: Apple's Schiller introduces the iPhone x during a launch event in Cupertino

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.