TeleTrade - Analytics


    873.00 6.50/10
    64% of positive reviews

    22.07.2015 17:21 European stocks fell

    European stocks fell after Apple Inc.'s worse-than-forecast results dragged semiconductor companies lower and commodity producers deepened declines.

    Apple chip suppliers Dialog Semiconductor Plc and Infineon Technologies AG lost at least 5.2 percent. ARM Holdings Plc, whose technology is used in iPhones, tumbled 6.6 percent. The company's quarterly revenue also missed estimates. BHP Billiton Ltd. slid 5.7 percent, leading a drop in miners, after saying petroleum, copper and coal output will drop in fiscal 2016.

    The Stoxx Europe 600 Index slipped 0.6 percent to 400.28 at the close of trading. It briefly pared a drop of as much as 0.8 percent after data showed U.S. existing-home sales climbed to an eight-year high in June, before resuming a decline.

    Apple's "supply chain clearly has ramifications for companies across the world," said Daniel Murray, London-based head of research at EFG Asset Management. "I would interpret the recent commodities selloff as partly a reflection of stronger dollar sentiment, as well as fears about China. None of that looks like it's going to change anytime soon."

    A fourth day of declines in commodity stocks sent the U.K.'s FTSE 100 Index 1.5 percent lower, the worst drop in western-European markets.

    The earnings season is picking up pace in Europe, with more than 230 Stoxx 600 companies scheduled to report through the rest of the month.

    Telenor ASA fell 2.8 percent after the Nordic region's largest phone company reported profit that fell short of analysts' estimates. TalkTalk Telecom Group Plc tumbled 8.9 percent after saying full-year earnings will be more weighted toward the second half than in previous years.

    Danske Bank A/S climbed 3.3 percent after saying quarterly profit increased and raising its full-year forecast. EasyJet Plc rose 4.9 percent after saying annual pretax profit will increase amid a recovery in sales in the summer.

    The Stoxx 600 fell for the first time in 10 days yesterday amid mixed earnings reports. Before that, fading fears over Greece pushed the gauge to its fastest rally in 3 1/2 years, taking it closer to strategists' year-end forecasts.

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree