Every year in early autumn Apple holds its event where it presents new iPhones, Apple Watches, and iPads. This year wasn’t an exclusion. But yesterday’s presentation didn’t result in Apple stock growth, and here’s why.
European equities rebound
On Wednesday, European equities surged due to the fact that Italian financial institutions rebounded on expectations that Rome could come to a compromise with Brussels over its budget plans. Another fact was that the battered tech sector revived after a widespread sell-off on fears over iPhone demand.
As a matter of fact, the STOXX 600 surged by 0.5% in early trade. The index is demonstrating a five-day losing marathon, which pushed the pan-European benchmark to the two-year minimum reached in October.
The DAX managed to rally by 0.9% in Germany. In Great Britian, the FTSE 100 soared by 0.3%.
The index of Italian financial institutions, FTIT8300 managed to ascend by 2.5% following a report that Italy’s deputy prime minister Matteo Salvini might welcome reviewing of the government's 2019 budget, thus driving hopes that the country could dodge a conflict with the European Commission.
The European banking index SX7P turned out to be the biggest sectoral performer in early morning trade, adding 1%. As for tech equities SX8P, they headed north by 0.4%.
Even although the rebound appeared to be broad-based with most sectors staying in positive territory, market participants were still cautious over the outlook for the market because of lingering fears over decelerating economic as well as earnings surge.
In addition to this, corporate updates provoked steep share price moves. For example, Babcock went down by 12% after the UK defense contractor grasped a one-off charge of 120 million pounds in order to reshape its business and also warned that profit from its nuclear decommissioning division would head south more than anticipated.
Moreover, Indivior went down by 8.7% after it told it could take a hit if the competing medication from Dr. Reddy's Laboratories shows up in the market in 2018.
Johnson Matthey became the top gainer on the STOXX, adding 8%.
Richard Branson offloaded nearly 10 million shares, which equals about 4% of the Virgin Galactic stock, leaving him with an 18% stake.
Today at 00:00 GMT+3 SPCE will present the second quarter 2021 financial results. We will get to know everything about the company's financial condition and plans.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.