Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL MARKETS-Stocks slide on Apple's forecast, dollar rebounds

Published 23/07/2015, 01:33 am
© Reuters.  GLOBAL MARKETS-Stocks slide on Apple's forecast, dollar rebounds
US500
-
DJI
-
AAPL
-
ARM
-
DLGS
-
IXIC
-
US10YT=X
-
MIWD00000PUS
-
DXY
-

* Stocks fall on ripple effects from Apple

* Oil falls on swelling U.S. crude stockpiles

* Gold slides 1 pct to 5-year low as investors pullback (Adds U.S. market open, byline, dateline, previous LONDON)

By Herbert Lash

NEW YORK, July 22 (Reuters) - Global equity markets fell on Wednesday, pulled lower by a weak revenue forecast at Apple Inc, the world's largest company, while a rebounding dollar after its biggest decline in a month weighed on gold and some stocks.

Apple AAPL.O shares tumbled 5 percent after the company's fourth-quarter revenue forecast fell short of estimates and it missed some targets for iPhone sales. ID:nL1N1012HZ

The poorly received earnings report hit companies with close ties to Apple. In Europe, chip designer ARM Holdings ARM.L , a major supplier, fell 6 percent and German chipmaker Dialog Semiconductor DLGS.DE tumbled 6.6 percent.

"Apple is a really big company, and having disappointed a little bit on the sales side of things, does tend to reverberate around the world in technology stocks," said Wouter Sturkenboom, a senior investment strategist at Russell Investments.

Across Europe, technology stocks shed nearly $6 billion of market value. ID:nL5N1021VW

Art Hogan, chief market strategist at Wunderlich Securities in New York, said there is concern regarding the lack of organic revenue growth and the strong dollar, which will continue to be a drag but that effect should moderate over time.

The FTSEurofirst 300 index .FTEU of leading European shares fell 0.55 percent at 1,587.50, while MSCI's all-country world stock index .MIWD00000PUS was down 0.67 percent.

On Wall Street, the Dow Jones industrial average .DJI fell 58.76 points, or 0.33 percent, to 17,860.53. The S&P 500 .SPX slid 5.46 points, or 0.26 percent, to 2,113.75 and the Nasdaq Composite .IXIC lost 39.47 points, or 0.76 percent, to 5,168.65.

The dollar index .DXY , a gauge of the greenback against a basket of currencies, extended its rise after data showed U.S. home resales hit an 8-1/2-year high in June, and was last up 0.33 percent at 97.648. ID:nL1N1020ZQ

The euro fell 0.39 percent to $1.0893 EUR= , while the dollar rose 0.12 percent at 124.02 yen JPY= .

Sterling gained in response to minutes from the Bank of England's last meeting that suggested some policymakers support higher interest rates.

The British pound GBP=D4 rose 0.5 percent at $1.5631.

Oil prices fell as U.S. crude stockpiles rose last week, remaining high above the five-year seasonal average, while gasoline stocks decreased and distillate inventories rose, data from the Energy Information Administration showed.

Brent crude LCOc1 was down 69 cents at $56.35 a barrel. U.S. crude CLc1 dipped below $50 a barrel, trading down 92 cents at $49.94 a barrel.

Gold fell more than 1 percent to a five-year low as a bounce in the dollar fueled downside momentum.

U.S. gold futures GCv1 for August delivery were down 1.3 percent at $1,089.10 an ounce.

Copper prices hit a two-week low as worries about demand from top consumer China mounted.

Benchmark and long-dated Treasury yields hit their lowest levels in nearly two weeks as poor sentiment from U.S. corporate earnings reports drove safe-haven buying. Uncertainty ahead of next week's Federal Reserve meeting capped gains.

Benchmark 10-year Treasury notes US10YT=RR were last up 10/32 in price to yield 2.3055 percent.

"The weakness in the stock market over the last two days has helped push Treasuries prices higher," said Shyam Rajan, U.S. rates strategist at Bank of America Merrill Lynch in New York.

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.