Apple’s Results Hit Tech Shares

Technology stocks fell in Europe and Asia on Wednesday after worse-than expected results from Apple and Twitter, while the dollar weakened before a U.S. monetary policy decision, propelling oil to 2016 highs.

Apple APPL.O fell 7.5 percent in pre-market trading after the company reported on Tuesday its first decline in iPhone sales and its first drop in revenue in more than a decade. Twitter (TWTR.N) lost more than 14 percent after first-quarter revenue lagged expectations.

Wall Street was expected to open lower SPc1, with futures on the tech-heavy Nasdaq NQc1 down more than 1 percent. Facebook (FB.O) and PayPal (PYPL.O) are expected to report results after the market closes on Wednesday.

In Europe, Austria’s AMS (AMS.S) fell 2 percent, though Dialog Semiconducter (DLGS.DE) and ARM (ARM.L) reversed early declines.

Japan’s Nikkei .N225 index closed 0.4 percent lower and Taiwan shares .TWII fell 0.2 percent as shares of suppliers of parts for iPhones fell.

The pan-European FTSEurofirst 300 index .FTEU3 rose 0.2 percent. German sportswear group Adidas (ADSGn.DE) surged 7 percent after raising its guidance for 2016 as it reported a 35 percent jump in first-quarter operating profit.

Barclays (BARC.L) was flat after reporting a fall in profits, but with signs of resilience at the bank’s UK division.

Earlier, MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS retreated 0.7 percent.

Australian shares closed down 0.6 percent. Banks fell there after weak inflation datarevived prospects for a rate cut as early as next week.

Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.