US equity markets will look to recover after a broad-based decline yesterday. The S&P 500 was up 0.11% to 1990.56 after a few minutes of trading today, following yesterday’s 0.65% decline.
By Kevin Loane
Wednesday, September 10, 2014
Technology stocks may recover quicker after falling faster yesterday. The NASDAQ rose 0.21% to 4561.62, after a 0.87% drop on Tuesday.
Traders may harbor disappointment following Apple’s ($AAPL) lackluster products launch yesterday. The Cupertino-based technology company announced two new versions of its iPhone range, as well as a smartwatch and mobile payments system. Despite the quantity, traders appeared disappointed with the quality of announcements. Apple’s share price ended the day down 1% after having previously risen by almost 5% as some investors questioned how many watches it would be able to ship. Market participants will have to wait a few months before receiving accurate data on the impact of Apple’s latest product. Sales are only expected to begin in Q1 2015. Some investors have already adopted a more optimistic outlook, and shares were up more than 1% to $99.04 soon after the opening bell in New York.
Elsewhere, technology’s former king, Microsoft ($MSFT), was said to be in talks to purchase Mojang, the maker of Minecraft, in a deal reportedly worth over $2 billion. The acquisition would mark the first takeover for CEO, Satya Nadella, since he took the reins in February. The news was surprising as Mojang chief, Markus Persson, is notoriously independent. He has previously shunned outside investment and publically complained about how Microsoft managed its store. If confirmed, the purchase would reinforce Nadella’s commitment to gaming, which contributed $6.7 billion to revenue in the twelve months to June, accounting for less than just under 9% of the group total. Microsoft shares were down 0.26%, to $46.64, in early morning trading.
In Europe, currency traders were parsing political resumes after the President-elect of the European Union (EU) Commission, Jean-Claude Juncker, unveiled his new team this morning. The list showed a reformed organizational structure that Juncker said would ‘put Europe back on the path to jobs and growth’. However, left-wing critics suggested that the body will be made up almost exclusively of center-right politicians loyal to Juncker’s economic viewpoint. Such an outcome may increase the likelihood of a more protracted period of stringent fiscal consolidation, with the associated negative impacts on employment, growth and inflation. If traders vote with their money, they appeared less than fully impressed. By 15:00 in Brussels, EUR/USD was down 0.28% to 1.2902.
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