03 January 2024

European Markets Expected to Open Lower Following Subdued New Year Start...Shares of Apple suppliers in Asia tumbled on Wednesday, tracking a 4% drop in the iPhone maker overnight


European Markets Expected to Open Lower Following Subdued New Year Start

By: Muthana Al-Najjar

European markets are expected to commence Wednesday’s trading with a downturn, following a subdued start to the new year. Tuesday witnessed a slight dip in European stocks, shortly after the regional benchmark reached its highest level in almost two years. The Asia-Pacific region also experienced a decline overnight, with notable drops in stocks from South Korea and Taiwan. The downturn was especially prevalent among major tech companies, including semiconductor manufacturers, in reaction to Barclays’ decision to downgrade Apple’s stock. Meanwhile, U.S. stock futures demonstrated a decline in overnight trading, marking the Nasdaq Composite’s poorest performance since October.

European Market Downswing

The CAC 40 of France, Germany’s DAX, England’s FTSE 100, and the Euro Stoxx 50 are all showing declines. This downturn marks a break in the two-day climbing streak of European stocks. The U.S. Futures Index points to Wall Street possibly opening negatively on Friday, with Dow futures falling 188.00 points, S&P 500 futures sliding 31.25 points, and Nasdaq 100 futures down by 158.25 points.

Impact on Major European Markets

Major European markets exhibited mixed and relatively flat results, with 
  • Germany’s DAX up by 0.11 percent,
  • London’s FTSE down by 0.15 percent, and the 
  • CAC 40 in France falling 0.16 percent. 
Notable movements included 
  • Fresenius in Germany surging 3.38 percent, 
  • Zalando tumbling 2.28 percent, and 
  • Bayer rallying 2.07 percent, while in London, 
  • St. James Place plunged 3.63 percent, 
  • Prudential tanked 3.49 percent, and 
  • Vodafone jumped 1.75 percent. 
  • In France, Pernod Ricard fell 2.63 percent, while Societe Generale spiked 2.46 percent.

Asia-Pacific and U.S. Markets Affected

Asia-Pacific markets fell overnight, led by stocks in South Korea and Taiwan as major tech firms, including chipmakers, came under pressure following Barclays’ downgrade of Apple.

  • U.S. stock futures also slipped in overnight trading, with the Nasdaq Composite registering its worst session since October. 
  • Indications are that the U.K.’s FTSE 100 index will open 16 points lower at 7,717, 
  • Germany’s DAX down 50 points at 16,719, and 
  • France’s CAC down 16 points at 7,514. December’s German unemployment data is set for release on Wednesday.

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CNBC
Gloomy sentiment continues with European markets heading for a negative open
European markets had a mixed open on Wednesday after a gloomy start to new year trading yesterday.
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24 mins ago

South Korea and Taiwan lead Asia markets lower as tech firms 

slide after Apple downgrade

This is CNBC’s live blog covering Asia-Pacific markets.

A currency dealer monitors exchange rates in a trading room at KEB Hana Bank in Seoul on June 21, 2021.
A currency dealer monitors exchange rates in a trading room at KEB Hana Bank in Seoul on June 21, 2021.
JUNG YEON-JE | AFP via Getty Images

Asia-Pacific markets fell Wednesday, with stocks in South Korea and Taiwan leading declines as major tech firms including chipmakers came under pressure after Barclays downgraded Apple.

Apple shares dropped 4% on Tuesday, after Barclays cut the iPhone maker’s rating to underweight and trimmed its price target to $160 from $161. Apple suppliers in major Asia markets fell, weighing down indexes in Taiwan and South Korea.

South Korea’s Kospi closed 2.34% lower at 2,607.31, while the small-cap Kosdaq fell 0.84% to end at 871.57. Most technology and chip stocks including Samsung Electronics, LG Corporation and SK Hynix fell about 3% each.

The Taiwan Weighted Index closed 1.65% lower at 17,559.31, with shares of Taiwan Semiconductor Manufacturing Company down 2.53% and Hon Hai, also known as Foxconn, falling 0.48%.

India’s factory activity data from S&P Global came in below expectations for December, according to a survey by S&P Global. The purchasing managers’ index for December hit an 18-month low of 54.9, compared with the 55.9 expected by economists polled by Reuters.


Shares of Apple suppliers in Asia slide after Barclays downgrades iPhone maker

Shares of Apple suppliers in Asia tumbled on Wednesday, tracking a 4% drop in the iPhone maker overnight after Barclays downgraded the stock.
Barclays cut Apple’s rating to underweight and trimmed its price target to $160 from $161.
Samsung Electronics shares slid as much as 3.01%, leading losses on South Korea’s Kospi that fell 1.78%. The South Korean electronics giant, as well as some of its subsidiaries, supply Apple with its screens and battery components.
Apple chip supplier Taiwan Semiconductor Manufacturing Corp also dropped as much as 2.02%, while shares of Hon Hai Precision Industry, which assembles iPhones and is known internationally as Foxconn, fell 0.48%.
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Taiwan Semiconductor Manufacturing Co Ltd
*Data is delayed | Exchange | TWD
578.00quote price arrow down-15.00 (-2.53%)
Last | 01/03/24 CTT

— Lim Hui Jie, Shreyashi Sanyal

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