European shares dropped on Wednesday, dragged down by tech stocks after Apple Inc’s revenue forecast fell short of estimates, as the quarterly earnings season gathered pace in Europe and on Wall Street.
The FTSEurofirst 300 index of top pan-European shares closed down 0.6 percent at 1,586.46 points. It fell 1.1 percent in the previous session.
The STOXX Europe 600 Technology index shed 1.7 percent, with chip designer ARM Holdings among those falling the most. ARM fell 6.6 percent after the results from Apple, a major customer, despite posting a 32 percent rise in second-quarter profit.
German chipmaker Dialog Semiconductor, another company with ties to Apple, tumbled 5.2 percent.
“Apple is a really big company, and having disappointed a little bit on the sales side of things, does tend to reverberate around the world in technology stocks,” said Wouter Sturkenboom, a senior investment strategist at Russell Investments.
However, he said that in the broader context of receding Greek fears, stock moves remained within the bounds of expected volatility.
Another badly hit sector was mining and natural resources, with the sector down 3.3 percent and Anglo American hitting its lowest level since 2002, as weak metals prices, worries over Chinese demand and discouraging company updates soured sentiment.
Credit Suisse shares were among the worst performers on the Swiss stock market after the Financial Times reported the bank’s new chief was sounding out investors for support on a potential deal to bolster asset management.
French utility EDF fell 1.5 percent after the European Commission ordered France to recover 1.37 billion euros ($1.5 billion) from the company because of a tax exemption granted in 1997. The company said it would proceed with the repayment but may appeal the decision.
UK telecoms company TalkTalk slumped 8.9 percent after warning that competition was increasing in the broadband market.
Danish lender Danske Bank rose 3.3 percent after a significant earnings beat.
Europe’s second-biggest budget carrier, easyJet, also gained, jumping 4.9 percent on guidance for annual profit growth of up to 14 percent.
“With all the concerns that the market has had about excess capacity in the market and the likely impact on yields, we believe that these results will be well received,” Numis analysts wrote in a note.
VimpelCom Ltd (ADR) (NASDAQ:VIP), provides telecommunications services in Italy, Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Laos, Algeria, Bangladesh, and Pakistan. VimpelCom Ltd shares are trading 67.64 % above their 52 week low price after the last close and -42.98 % below the 52 week high. Its latest closing price was down -1.11 % from the average-price of 200 days while it kept its distance from the SMA50 at -5.68 % and 2.93 % compared with the SMA 20.
Shares of DryShips Inc.(NASDAQ:DRYS) were 20.20 % off 52 week lows as of the latest close and -82.47 % below the 52 week high. Its latest closing price was down -41.14 % from the average-price of 200 days while it maintained a distance from the SMA 50 at -14.39 % and -3.28 % compared with the SMA 20. DRYS provides ocean transportation services for drybulk and petroleum cargoes, and offshore deepwater drilling services.
NXP Semiconductors NV (NASDAQ:NXPI) a semiconductor company, provides high performance mixed signal and standard product solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products worldwide. The stock’s latest price traded at 67.78 % off 52 week lows after the closing bell and was -20.81 % behind its 52 week high. Its latest closing price was 2.90 % below the SMA200 while the distance from the SMA 50 and SMA 20 was -11.12 % and -5.69 % respectively.
Tenaris SA (ADR) (NYSE:TS) is trading 1.68 % higher than the 52 week low price and -45.91 % below the 52 week high. The stock’s latest closing price was -18.43 % down from the average-price of 200 days while it kept its distance from the SMA50 at -11.81 % and – 5.84 % compared with the SMA 20. Tenaris SA through its subsidiaries, manufactures and supplies steel pipe products and related services for the energy and other industrial applications.
ArcelorMittal SA (ADR) (NYSE:MT) together with its subsidiaries, operates as an integrated steel and mining company worldwide. ArcelorMittal SA so far this year has moved down -18.81 % and its monthly performance stands at -16.52 %. The stock was up2.21 % from its 52 week low and was -42.92 % below the 52 week high. Its latest closing price was down-17.80 % from the average-price of 200 days while it kept its distance from the SMA50 at -15.33 % and -7.15 % compared with the SMA 20.