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

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell