By Emily Horton
European stocks opened lower on Thursday as a surprise sales downgrade from Apple jolted markets.
As a result, the technology sector led the decline, with Switzerland’s Ams AG losing 20%.
What are markets doing?
All European markets were struggling on Thursday, with the Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.87% dropping 0.6% to 335.16, having finished down 0.1% the previous day.
France’s CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +1.22% and Germany’s DAX 30 /zigman2/quotes/210597999/delayed DX:DAX +0.86% both lost 0.8% and Italy’s FTSE MIB /zigman2/quotes/210598024/delayed IT:I945 +1.38% was 0.6% off the pace at 18,233.13.
In the U.K., the FTSE 100 index of leading shares /zigman2/quotes/210598409/delayed UK:UKX +0.51% was down by 0.3% at 6,714.13.
The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.0838% was up to $1.1382, having finished at $1.1466 late Wednesday in New York.The British pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.0431% was down to $1.2561 from $1.2745.
What is driving the market?
In a rare move, Apple downgraded its revenue projections to $84 billion for the quarter, about 9% less than the $91.3 billion estimate from analysts polled by FactSet.
In a letter to shareholders, Apple’s CEO Tim Cook attributed the projected fall to China’s slowing economy and recent U.S. tariffs on more than $200 million worth of Chinese goods. The company’s shares fell 7.6% to $146 in after-hours trading on Wednesday.
Asian markets were mostly down as a result of Apple’s announcement.
What stocks are active?
The technology sector led the top decliners in the Stoxx 600. Ams AG /zigman2/quotes/205647546/delayed CH:AMS +1.84% lost almost 20% on Thursday, while Dialog Semiconductor Plc /zigman2/quotes/203017921/delayed DE:DLG +0.18% dropped by 7% and Infineon Technologies AG /zigman2/quotes/204995926/delayed DE:IFX +1.29% lost 4%.
Royal Mail PLC /zigman2/quotes/204213037/delayed UK:RMG +1.76% was the top gainer for the Stoxx 600, jumping by just over 4%.
In the retail sector, Next PLC /zigman2/quotes/200704121/delayed UK:NXT +1.36% gained 3%, while supermarket chains Tesco PLC /zigman2/quotes/203761082/delayed UK:TSCO +0.16% added 2% and Marks & Spencer Group PLC /zigman2/quotes/206225481/delayed UK:MKS -0.68% rose by just under 2%.