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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 +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%.

/zigman2/quotes/210599654/delayed
XX : STOXX
457.04
+3.94 +0.87%
Volume: 0.00
June 24, 2021 11:03p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,631.15
+80.08 +1.22%
Volume: 74,425
June 24, 2021 6:05p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,589.23
+132.84 +0.86%
Volume: 52,474
June 24, 2021 6:30p
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/zigman2/quotes/210598024/delayed
IT : Borsa Italiana
25,422.22
+345.08 +1.38%
Volume: 0.00
June 24, 2021 5:35p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,109.97
+35.91 +0.51%
Volume: 686,441
June 24, 2021 4:57p
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/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1941
+0.0010 +0.0838%
Volume: 0.0000
June 25, 2021 12:26a
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/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3928
+0.0006 +0.0431%
Volume: 0.0000
June 25, 2021 12:26a
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/zigman2/quotes/205647546/delayed
CH : Switzerland: SWX
CHF 18.30
+0.33 +1.84%
Volume: 1.30M
June 24, 2021 5:31p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
CHF4.68 billion
Rev. per Employee
CHF126,013
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/zigman2/quotes/203017921/delayed
DE : Germany: Frankfurt
65.22
+0.12 +0.18%
Volume: 34.00
June 24, 2021 8:59p
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
32.97
+0.42 +1.29%
Volume: 4,483
June 24, 2021 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€194,374
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/zigman2/quotes/204213037/delayed
UK : U.K.: London
589.00 p
+10.20 +1.76%
Volume: 2.96M
June 24, 2021 4:35p
P/E Ratio
9.53
Dividend Yield
3.40%
Market Cap
£5.78 billion
Rev. per Employee
£72,295
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/zigman2/quotes/200704121/delayed
UK : U.K.: London
7,890.00 p
+106.00 +1.36%
Volume: 190,055
June 24, 2021 4:35p
P/E Ratio
35.56
Dividend Yield
0.00%
Market Cap
£9.96 billion
Rev. per Employee
£138,653
loading...
/zigman2/quotes/203761082/delayed
UK : U.K.: London
223.35 p
+0.35 +0.16%
Volume: 13.72M
June 24, 2021 4:35p
P/E Ratio
19.56
Dividend Yield
4.10%
Market Cap
£17.11 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206225481/delayed
UK : U.K.: London
152.75 p
-1.05 -0.68%
Volume: 6.44M
June 24, 2021 4:36p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.01 billion
Rev. per Employee
£131,430
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