19th Jul 2022 06:57
(Alliance News) - Stock prices in London are seen opening lower on Tuesday, after Wall Street took a hit on Monday following a report that Apple is planning to slow hiring.
New York ended lower despite a positive start on Monday. The caution has filtered into the Asian day and European equity market futures on Tuesday.
IG futures indicate the FTSE 100 index is to open 29.9 points, 0.4%, lower at 7.193.34. The blue-chip index closed up 64.23 points, or 0.9%, at 7,223.24 on Monday.
In China, the Shanghai Composite was down 0.4% in afternoon trade on Tuesday, and the Hang Seng in Hong Kong was down 0.9%. The S&P/ASX 200 in Sydney was 0.6% lower.
The Nikkei 225 was up 0.6%. Tokyo was playing catch up after being closed for the Marine Day holiday on Monday.
The Dow Jones Industrial Average ended down 0.7% on Monday in New York, and the S&P 500 and the Nasdaq Composite both lost 0.8%.
Apple lost 2.0% after Bloomberg reported that the technology firm plans to slow hiring and spending growth in 2023 in some of its divisions to cope with a potential economic downturn.
The iPhone maker is planning to be more cautious during times of uncertainty, Bloomberg said, citing people with knowledge of the matter.
CMC Markets analyst Michael Hewson commented: "There was always that nagging doubt that any rebound was always one negative headline away from coming unstuck, as is so often the case when you get bear market rallies. This caution turned out to be justified.
"As a result of yesterday's late US sell off, markets in Europe look set for a lower open."
The pound was quoted at USD1.1966 early Tuesday in London, down from USD1.1994 late Monday. The euro stood at USD1.0149, down from USD1.0167. Against the yen, the dollar was trading at JPY137.95, down from JPY138.17.
The economic events calendar on Tuesday has UK labour market data at 0700 BST and eurozone inflation readings at 1000 BST.
The UK unemployment rate is expected to have remained at 3.8% in the three months to May, according to consensus cited by FXStreet.
Brent oil was quoted at USD105.89 a barrel early Tuesday in London, up from USD105.55 at the European equities close on Monday. Gold stood at USD1,710.17, up slightly from USD1,709.33.
The UK corporate calendar on Tuesday has interim results from Arbuthnot Banking and from photo booth operator Photo-Me International. There are also trading statements from construction firm Kier and international money transfer provider Wise.
Already out, BHP reported a mostly dim production performance for its recently ended financial year, with declines in copper, iron ore and metallurgical coal.
For the year ended June 30, copper production dropped 4.3% to 1.57 million tonnes from 1.64 million tonnes. Iron ore production for the year dipped 0.1% to 253.2 million tonnes from 253.5 million tonnes the prior year. Metallurgical coal output declined 8.8% to 29.1 million tonnes from 31.9 million tonnes.
BHP shares were 0.7% lower in Sydney.
By Eric Cunha; [email protected]
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