Per our morning note European indices had worked off lows by lunch but with the open of the US market once again turned off. By day’s end indices had closed at or a bit lower than earlier lows but at least held above yesterday’s opening lows. Telcos, Food, and Utilities managed small gains with the balance of sectors lower. Industrials fell over two percent with sizable losses in Chemis, Travel, and Personal goods names (think luxury names specifically).
And as noted earlier, Apple-related names were well offered today with millions wiped off of valuations. Switzerland reopened today and finished higher after being shut yesterday but component maker AMS fell over 23%. Per Bloomberg, the firm gets 20% of its revenue from Apple. STMicro -12% gets 75% of their revs from Apple with Dialog Semi -10% and Infineon -4.7%.
European names in the luxury space continue to slide post the disappointing Chinese PMI and yesterday’s Apple news. It appears Qualcomm is gaining steam against Apple as it looks like older iPhones will soon be prevented from being sold in Germany. Kering -5.5% closed right at their 400 day, a trend line that has supported the name since mid-October. Burberry -5.9% closed down under October’s low with Richemont -2.8% down to early 2016 levels.
Just prior to the close in Europe headlines on Airbus -3.5% noted the company will fall short of their 800 plane delivery target. Official results will be out next Friday but it appears the final number is between 790-800 planes.
And of course in the US Bristol Myers’ purchase of Celgene is front and center with other like pharmas bid better today.
From earlier: Next +4.1%, Zalando +4.4%.
Tonight, Caixin PMI Service readings are expected in China with the space thus far holding in. Japanese and HK PMI numbers are also due along with Australian Service PMI. Service PMI readings are expected in Europe along with region-wide CPI.