Apple suppliers drop after new iPhone announcement
Europe's benchmark stock index closed marginally lower on Wednesday, as London-listed shares sold off and Apple Inc. suppliers declined a day after the tech giant revealed its new iPhones.
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The Stoxx Europe 600 index fell 0.08 point to end at 381.34, narrowly breaking a five-session winning streak. On Tuesday, the benchmark rose 0.5% (http://www.marketwatch.com/story/european-stocks-push-higher-with-banks-up-as-investors-embrace-risk-2017-09-12).
"Stock markets in Europe are experiencing low volatility as the rally that we saw at the start of the week has lost momentum," said David Madden, market analyst at CMC Markets UK, in a note.
"The bullish sentiment on the back of Hurricane Irma not being as severe as predicted, and no new tensions in relation to North Korea, has been replaced with a lackluster attitude. You could say traders are pausing for breath after the positive run," he said.
Apple bites: Contributing to the downward move were losses in shares of suppliers to Apple Inc. (AAPL) after the launch of its new iPhone models (http://www.marketwatch.com/story/everything-apple-announced-at-its-iphone-event-2017-09-12) on Tuesday. Apple revealed its new $1,000 iPhone X smartphone won't factor into its current fiscal year (http://www.marketwatch.com/story/delayed-iphone-x-launch-pressures-apple-stock-2017-09-12), as it will be released on Nov. 3. Frankfurt-listed shares of Apple ended 1% lower.
Among suppliers, Dialog Semiconductor PLC (DLG.XE) fell 1.6%, and AMS AG (AMS.EB) dropped 3.9%.
Pound pressure: The Stoxx 600 was feeling the weight of a selloff in London-listed blue-chips as strength in the British pound piled on pressure. Sterling traded at its highest in a year, above $1.33, during the session. The currency fell, however, after U.K. wage-growth figures came in weaker (http://www.marketwatch.com/story/uk-jobless-rate-real-wage-growth-declines-2017-09-13) than expected, but the FTSE 100 still ended down 0.3% at 7,379.70.
Stock movers: Compagnie Financiere Richemont SA shares (CFR.EB) lost 1.2% even as the Swiss luxury products maker posted a 12% rise in sales. Analysts polled by Reuters had expected a 10% increase. Shares of rival luxury watch goods maker Swatch Group Ltd. (UHR.EB) fell 3.9%.
Vivendi SA (VIV.FR) gained 2.8% after UBS raised its rating on the French media company to buy from neutral.
Juncker's trade push: European Commission President Jean-Claude Juncker called for the European Union to hold free-trade talks with Australia and New Zealand (http://www.marketwatch.com/story/eus-juncker-pushes-for-free-trade-talks-with-australia-and-new-zealand-2017-09-13) in his annual state of the EU address Wednesday.
The move is seen as reflecting the EU's ambitions to fill a gap in global leadership left by U.S. President Donald Trump's protectionist policies.
Country indexes: Germany's DAX 30 index ended 0.2% higher at 12,553.57, and France's CAC 30 index moved up 0.2% to 5,217.59.
(END) Dow Jones Newswires
September 13, 2017 12:10 ET (16:10 GMT)