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Morning markets: Wall St falls as iPhone 7 fails to impress

Friday, 9 Sep 2016 06:35:23 | Michael Janda And Rebecca Hyam Rebecca Hyan

US shares were weighed down by a 2.5 per cent slide in Apple stock. (Chip East: Reuters)

Wall Street lost value overnight, with Apple shares sliding, after the technology giant's latest offering, the iPhone 7, failed to impress investors.

Markets at 8:40am (AEST):

  • ASX SPI 200 futures -0.2pc to 5,352
  • AUD: 76.44 US cents, 57.5 British pence, 78.33 Japanese yen, 67.85 euro cents, $NZ1.033
  • US: Dow Jones -0.3pc to 18,480, S&P 500 -0.2pc to 2,181, Nasdaq -0.5pc to 5,259
  • Europe: EuroStoxx -0.3pc to 3,084, FTSE 100 +0.2pc to 6,859, DAX -0.7pc to 10,675
  • Commodities: Iron ore -1.5pc to $US57.40/tonne, Brent crude +3.6pc to $US49.70/barrel, spot gold -0.5pc to $US1,338/ounce

Apple's stock price lost 2.5 per cent, marking its steepest fall since late June, when Britain's vote to leave the European Union sparked an enormous sell-off.

The market's overall falls were limited limited, however, by gains in the energy sector, after crude oil prices rallied.

West Texas crude oil increased to $US47.58 a barrel, while the price of a barrel of Tapis had risen to $US51.02.

The oil price rally was driven by a massive 14.5 million barrel weekly drop in US crude stockpiles - the biggest this millennium.

"The biggest ever weekly drop in nationwide crude stocks was driven by a collapse in crude imports, a surge in refinery runs and crude production outages in the Gulf of Mexico," observed Citi's Christopher Main.

It was a mixed finish in Europe, after the European Central Bank left interest rates on hold, as was widely expected.

"At his press conference, President Draghi sounded almost proud of how the loan promotion program was supporting lending growth and eurozone domestic demand this quarter, notwithstanding some recent data jitters from choppy confidence and activity," noted NAB senior economist David de Garis.

Meanwhile, bets on a US rate rise mysteriously increased, despite a relative lack of news from the Federal Reserve and no fresh economic data.

"Its interesting that there has been a slight tick higher in the implied probability around hikes from the Fed, with the prospect of a September rate hike increasing to 28 per cent (it was 22 per cent) and December now 59 per cent (51 per cent)," observed IG chief market strategist Chris Weston.

"If they do hike it won't be down to being data dependant though as they keep detailing, but they would be reverting back to a similar mindset as December 2015 and raise because they had to save face."

The Australian share market is on track for a weak start, and futures trade was indicating a 0.2 per cent decline early on.

At the same time, the Australian dollar was worth 76.4 US cents, having come under pressure overnight.

Today's agenda:

Australia:
  • Home loans – Jul (11:30am AEST)

China:
  • Inflation – August (11:30am AEST)

US:
  • Wholesale inventories – July (12:00am AEST)

AustraliaPlus


 

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