A roundup of trading on major world markets:
NEW YORK – Shares of Apple tumbled 4.3 per cent and Microsoft fell 3.7 per cent as disappointing earnings from the two technology titans weighed on the broader market.
The Dow Jones Industrial Average fell 68.25 points, or 0.38 per cent, to 17,851.04.
The broad-based S&P 500 dropped 5.06 points, or 0.24 per cent, to 2,114.15, while the tech-rich Nasdaq Composite Index sank 36.35 points, or 0.7 per cent, to 5,171.77.
Apple reported a 38 per cent jump in net income for the quarter ending June 27 to $US10.7 billion, but traders focused on a revenue forecast that fell shy of expectations and commentary from some analysts that the 47.5 million iPhones sold missed expectations.
Deutsche Bank said the market’s reaction to Apple’s results showed “it’s getting harder to beat the bulls.”
Microsoft reported a loss of $US3.19 billion due to a hefty writedown on the smartphone business it acquired from Nokia and restructuring charges of nearly $US1 billion.
Dow member Caterpillar fell 3.2 per cent after the company reported lower equipment sales in most of its businesses in the second quarter. The industrial giant will issue its full earnings report on Thursday.
LONDON – European shares fell with the mining sector hit by renewed concern over China and after disappointing earnings figures from US technology giants Apple, Yahoo and Microsoft.
London’s benchmark FTSE 100 index fell 1.5 per cent to 6,667.34 points, with mining companies hit hard by stubborn worries over Chinese demand.
In the eurozone, the CAC 40 in Paris shed 0.47 per cent to 5,082.57 points and Frankfurt’s DAX 30 dropped 0.72 per cent to 11,520.67 points.
London’s mining sector faced fierce selling pressure, with sentiment dented by sliding metal prices.
Anglo American slumped 5.6 per cent, BHP Billiton tumbled 5.7 per cent and Rio Tinto lost 3.6 per cent.
HONG KONG – Hong Kong equities slipped 0.99 per cent following a recent uptick and tracking losses in New York.
However, Shanghai edged up for a fifth straight session with investors returning after China moved this month to avert a mainland meltdown.
The benchmark Hang Seng Index eased 253.81 points to finish Wednesday at 25,282.62 on turnover of HK$81.73 billion ($A14.22 billion). Shanghai gained 0.21 per cent.
The Shanghai Composite Index added 8.38 points to 4,026.05 and the Shenzhen Composite Index, which tracks stocks on China’s second exchange, rose 1.01 per cent, or 22.88 points, to 2,287.98.
WELLINGTON – New Zealand shares rose to a record as investors bought dividend paying stocks such as Meridian Energy and Contact Energy on the expectation the Reserve Bank will cut the official cash rate.
The S&P/NZX 50 Index advanced 50.83 points, or 0.9 per cent, to 5927.74.
