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Jan. 3, 2019, 5:04 a.m. EST

European markets shocked by Apple downgrade

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By Emily Horton


Getty

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 -1.25%  dropping 0.6% to 335.16, having finished down 0.1% the previous day.

France’s CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.76% and Germany’s DAX 30 /zigman2/quotes/210597999/delayed DX:DAX -0.99% both lost 0.8% and Italy’s FTSE MIB /zigman2/quotes/210598024/delayed IT:I945 -1.42%  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 -1.59%  was down by 0.3% at 6,714.13.

The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.0085%  was up to $1.1382, having finished at $1.1466 late Wednesday in New York.The British pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.2449%  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 -3.45% lost almost 20% on Thursday, while Dialog Semiconductor Plc /zigman2/quotes/203017921/delayed DE:DLG +0.02%   dropped by 7% and Infineon Technologies AG /zigman2/quotes/204995926/delayed DE:IFX -1.91%  lost 4%.

Royal Mail PLC /zigman2/quotes/204213037/delayed UK:RMG -1.29%  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 -0.95% gained 3%, while supermarket chains Tesco PLC /zigman2/quotes/203761082/delayed UK:TSCO -1.14% added 2% and Marks & Spencer Group PLC /zigman2/quotes/206225481/delayed UK:MKS -2.83%  rose by just under 2%.

/zigman2/quotes/210599654/delayed
XX : STOXX
367.88
-4.65 -1.25%
Volume: 0.00
Aug. 14, 2020 1:53p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
4,953.49
-88.89 -1.76%
Volume: 28,362
Aug. 14, 2020 1:53p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
12,864.61
-129.10 -0.99%
Volume: 27,650
Aug. 14, 2020 1:53p
loading...
/zigman2/quotes/210598024/delayed
IT : Borsa Italiana
19,970.25
-287.06 -1.42%
Volume: 0.00
Aug. 14, 2020 1:53p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,087.50
-98.12 -1.59%
Volume: 223,363
Aug. 14, 2020 12:53p
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/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1813
-0.0001 -0.0085%
Volume: 0.0000
Aug. 14, 2020 8:08a
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3100
+0.0032 +0.2449%
Volume: 0.0000
Aug. 14, 2020 8:08a
loading...
/zigman2/quotes/205647546/delayed
CH : Switzerland: SWX
CHF 16.36
-0.59 -3.45%
Volume: 1.07M
Aug. 14, 2020 1:52p
P/E Ratio
6.62
Dividend Yield
N/A
Market Cap
CHF4.62 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203017921/delayed
DE : Germany: Frankfurt
40.74
+0.01 +0.02%
Volume: 50.00
Aug. 14, 2020 11:07a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
N/A
loading...
/zigman2/quotes/204995926/delayed
DE : Germany: Frankfurt
21.79
-0.43 -1.91%
Volume: 4,795
Aug. 14, 2020 1:48p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€194,374
loading...
/zigman2/quotes/204213037/delayed
UK : U.K.: London
214.10 p
-2.80 -1.29%
Volume: 1.70M
Aug. 14, 2020 12:50p
P/E Ratio
13.31
Dividend Yield
0.00%
Market Cap
£2.12 billion
Rev. per Employee
£63,484
loading...
/zigman2/quotes/200704121/delayed
UK : U.K.: London
5,846.00 p
-56.00 -0.95%
Volume: 43,823
Aug. 14, 2020 12:51p
P/E Ratio
12.47
Dividend Yield
0.00%
Market Cap
£7.67 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203761082/delayed
UK : U.K.: London
226.30 p
-2.60 -1.14%
Volume: 4.71M
Aug. 14, 2020 12:51p
P/E Ratio
22.81
Dividend Yield
4.04%
Market Cap
£22.61 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206225481/delayed
UK : U.K.: London
111.70 p
-3.25 -2.83%
Volume: 4.38M
Aug. 14, 2020 12:52p
P/E Ratio
72.06
Dividend Yield
3.49%
Market Cap
£2.30 billion
Rev. per Employee
N/A
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