The trigger is the Wall Street Journal report, according to which Apple in recent weeks, production orders for both the best iPhone XS models and XS Max, as well as for the slightly cheaper iPhone XR, have decreased.
At 4:25 pm AMS fell by about 4.4 percent, to 24.96 Swiss francs. This is the lowest level in two years. In the morning trade, the stock temporarily increased to 7.7 percent. Already last week, AMS lost significant value. In early March, the price reached a record level of 121.20 Swiss francs.
Logitech, for which iPhone accessories are an important source of income, also drops significantly, losing 3.6 percent to 33.18 francs.
As a reason for lower production orders for suppliers, the report refers to the increasingly saturated smartphone market and strong competition from other suppliers. According to the WSJ, at the end of October, Apple lowered the production order for several pavers, initially about 70 million units, by a third until February 2019.
The holding of the Italian government against the budget rejected by the EU Commission frustrates investors: they throw ten-year Italian government bonds out of their securities accounts. In turn, the yield increases to 3,561 percent, which is the highest level in three weeks.
Brent loses 1.6 percent to $ 65.71 per barrel, and WTI drops almost two percent to $ 55.43. Traders refer, among other things, to speculation about excess demand due to the cyclical weakening of demand.
Wall Street began on Monday with a loss in the new week. Even after prices fell last week, bargain hunters held out. The smoldering trade conflict between the United States and China weakens US consumer sentiment. For the first time in the history of the Asia-Pacific Economic Summit (Apec), participants were unable to agree on a joint final communiqué this weekend. The verbal exchange between Vice President Mike Pence and Chinese President Xi Jinping showed that a quick solution to the conflict was unlikely, traders said.
Many investors also held back, because in New York due to the Thanksgiving holiday on Thursday, the stock exchange week is interrupted. Dow Jones fell 0.3 percent in the first minutes to 25,340 points. In addition, the S & P 500 lost 0.3 percent, the Nasdaq was 0.6 percent.
Again, Apple’s speculation was in the spotlight: The Wall Street Journal reported that the iPhone maker reduced production due to weaker demand for its latest models. Shares fell by two and a half percent.
US stocks open lower https://t.co/4xresTa3Ij pic.twitter.com/lTI1ATmAyR
– Bloomberg Markets (@markets) November 19, 2018
In parallel with the shares of Renault, automaker bonds are also reduced. As a result, the return of the current title to March 2021 almost doubled to 0.767 percent.
Oil prices rose slightly on Monday. During the morning day, prices lowered some of the early profits. At noon, the cost of a barrel (159 liters) on the North Sea Brent was $ 66.86. It was ten cents more than Friday. The price of US West Texas Intermediate (WTI) crude rose 18 cents to $ 56.64.
The most important problem in the oil market remains the question of how large producers of crude oil will react to the current excess supply. In Russia, an important producer country has recently been cautious about the issue of production cuts. Russian Oil Minister Alexander Novak said that it is better to understand the current conditions on the oil market and the forecast for the winter months is necessary before it can be approved by the decline in production.
The pound fell by only $ 1.28, marking a daily low of $ 1.2796. On Friday, the pound is losing about 0.3 percent. Prime Minister Theresa May exaggerated the prospects for extending the transition period after Brexit.
The Swiss stock market fell on Monday after a more solid start into cons. The leading index, SMI, fell 0.3 percent lower at 8,879 points to noon, rising to 8977 points at the beginning. The obvious reason for changing investor opinions was not obvious to market participants. However, in recent days it has recently happened that the market is slipping after a more solid start into cons, the stock strategist said. This reflects investor skepticism. "I would not know anything that could provoke a higher market."
Investors are concerned about the divergence of divorce between the EU and the UK, as well as the government crisis in London, the Italian budget dispute and the smoldering trade dispute between the US and China make investors nervous. Cyclical factors are added to political uncertainty factors. Several economic data indicate a slowdown in the growth of the global economy, which, in turn, leads to concerns about the development of company profits.
Swiss defaults fell by a majority in the minuses. At the top of the losers were Swatch and Richemont with strong price discounts of 4.6 and 1.7 percent. Bank of America Merrill Lynch lowered target price for two luxury goods manufacturers. “These two are by far the most sensitive to the trade dispute,” said the strategist-actor.
But the fall in prices also prevailed among the originally demanded banks and cyclically managed assets. Shares of large banks Credit Suisse and UBS lost 0.7 and 0.3 percent respectively. Julius Baer stayed better with a 0.3 percent price increase. A private bank wants to announce on Tuesday the progress of the business in the first ten months.
There was also a loss in cost for human resource services provider Adecco, cement manufacturer LafargeHolcim, and bodybuilding company Sika.
In particular, Novartis and ABB provided support, although the initial strong profit was largely lost again. ABB shares rose 0.4 percent. According to the Financial Times report, the Japanese company Hitachi is in talks with an electrical company to purchase parts or the entire network business of the entire network. Last week, Reuters news agency told reporters that ABB is in talks with three Asian companies.
Novartis shares rose after recommendations for the purchase of Goldman Sachs 0.2 percent. The pharmaceutical giant may use the broader drug Promacta in the future. The US Food and Drug Administration approved treatment for patients with aplastic anemia with a rare genetic blood disorder.
In the broad market, investors resorted to shares of the pharmaceutical company Cosmo: shares rose by 3.9 percent. In the US, the FDA approved the antibiotic Aemcolo for treating traveler's diarrhea.
Shares of the pharmacy mail order Zur Rose rose 3.2 percent. The company wants to attract about 200 million francs with an increase in capital and thereby finance the acquisition of medpex.
Sales continue in Bitcoin: cryptocurrency fell by more than five percent on Monday on the Bitstamp trading platform. The price of bitcoins fell to $ 5,173, its lowest level in 13 months. “There is an absolute sale on the market,” said Kryptodevisen expert Timo Emden from Emden Research. "Currently, investors create uncertainty in the face." For this reason, industry experts see the technical division of Bitcoin-sister currency Bitcoin Cash. Already last year, such a technical unit (hard fork) of Bitcoin caused turbulence at crypto-exchange stations. This is where Bitcoin Cash came from.
Since the beginning of November, the Bitcoin share price has fallen by more than $ 1,200. As a result, the largest and most famous cryptocurrency is now only a quarter of the record maximum at the end of 2017. If the price falls below $ 5,000, experts expect it to drop even faster. “The significant trick of a psychological $ 5,000 mark can put marketers in panic mode,” said Emden. Then it is possible that it will slip up to 3000 dollars.
Stocks of jewelry and watchmakers Richemont and Swatch were weak on Monday in a favorable market environment for the new stock market week. Thus, the paper continues a significant downward movement, which continues with the beginning of the summer. On the day of the report, ratings Merrill Lynch and Mainfirst sent Swatch down the charts. In the stock market, the owners of the watch group fell by 2.4 percent at 10.20. Analysts expect the demand for luxury goods in the industry’s most important market to fall in China.
The Swiss stock market is on Monday with a plus in trading. SMI starts with a 0.6 percent increase at 8964 points. Positive recommendations from abroad offer support here. However, investors are likely to remain cautious after a week of the week, as issues in the political arena remain in the spotlight. Only a few impulses will come from the reporting season this week, which went well in Switzerland.
ABB (+ 1.2%) is clearly starting higher, as the rumors about the sale of the electric grid division are again repeated. In addition, Novartis is looking for papers (+1.8 percent). The pharmaceutical company was approved for the Promacta drug by the US Food and Drug Administration, but supplied Alphabet with contact lenses for diabetic patients to Google's parent company. On the part of the analytical community, Goldman Sachs raised the rating of Basler to a “neutral” purchase.
Power supply unit ABB https://t.co/n2xeRNT6yq
– Financial Times (@FT) November 18, 2018
The heavyweights Roche (+0.7 percent) and Nestlé (+0.2 percent) are also increasing. Large banks CS (+0.4 percent) and UBS (+0.9 percent) are also in demand. However, the stocks of Richemont (-0.8 percent) and Swatch (-2.6 percent) watches are among the few losers. In the wider market, Cosmo paper stands out after the FDA approves diarrhea medicine.
Oerlikon (+ 2.9 percent) is also in demand, after Société Générale raised the newspaper’s rating to buy “hold”. The group also announced an order from Airbus this morning.
Investors in Japan again stocked early in the week. The Nikkei base index closed 0.7% higher on Monday by 21,821 points. Wider Topix won half a percent. Investors were relieved to find that Japanese exports rebounded from the recent downturn in October, which is 8% more than in the same month last year. “Although the numbers were slightly weaker than expected, investors are relieved to note that they did not fall as they did last month,” said analyst Hikaru Sato from a broker at Daiwa Securities.
The Chinese stock exchanges also rose, but worried about the consequences of China’s trade dispute with the United States. For the first time since the meeting at the annual Asia-Pacific Economic Summit this weekend, there was no final statement. There was an open exchange of blows between the United States and China. While US Vice President Mike Pence from China called for more active trade negotiations between the two largest economies in the world, Chinese President Xi Jinping warned of the dangers of increasing economic foreclosure.
The Swiss Market Index (SMI) is calculated by Bank Julius Beer at 8,921 points (+0.16 percent). The dispute over a divorce agreement between the EU and the UK and the government crisis in London keep investors on their feet. Add to this the conflict over the Italian budget and the trade dispute between the United States and China.
Among individual SMI securities, only ABB (+ 1.5%) and Novartis (+ 0.7%) are ahead of the curve. According to media reports, ABB is in talks with Hitachi to sell its electrical grid division. Goldman Sachs won from Novartis. Oerlikon (+2 percent) is in a broad market. The group is deepening cooperation with Airbus.
EXECUTIVE SWITZERLAND$ SMI + 0.16%$ SMIM -0.07%$ ABBN +1.5 percent (power systems)$ NOVN + 0.7% (update)$ ROG unv. (down)$ HOURS -0.6%$ CEVA + 0.5% (arbitration)$ COPN +2.5 percent (FDA approval)$ Fhzn -2.5%$ OERL + 2% (update)$ UBXN -1.6%
Other promotions are offered.
– cashInsider (@cashInsider) November 19, 2018
Oil prices started a new trading week on Monday with a moderate increase in prices. In the morning a barrel (159 liters) of the North Sea Brent cost 67.31 US dollars. This is 55 cents more than Friday. The price of American oil West Texas Intermediate (WTI) rose 68 cents to 57.14 dollars.
The most important problem in the oil market remains the question of how large producers of crude oil will react to the current excess supply. In early December, the Opec oil cartel will meet in Vienna to discuss its production next year. Saudi Arabia, the largest producer country, is in favor of reducing daily production by one million barrels.
Oil price: view: oil price is now controlled by The Economic Times https://t.co/NE4HqWpRjK
– Fredy Eka Permana (@fredieka) November 19, 2018
The euro started on Monday with a slight loss in the new trading week. In the morning, the total currency costs $ 1.1395. On Friday evening, the euro still exceeded $ 1.14. Also for the franc, the euro came back a bit compared to late Friday evening. Currently it is trading at 1.1405, after 1.1410 francs. The US dollar rose again at parity against the franc and is currently worth 1,0004 francs.
In Tokyo, the 225 percent Nikkei was 0.4 percent higher by 21,772 points on Monday. The MSCI index for Asian stocks outside Japan rose 0.2 percent. On Friday, statements by US President Donald Trump supported Wall Street. Trump said he may waive new duties on goods from the People’s Republic while negotiations are underway with China. But over the weekend, the clash between the two largest economies in the world darkened the economic summit in the Asia-Pacific region.
After the collision between the USA and China in APEC, all eyes turned to the Trump-X meeting in Argentina https://t.co/TcjQql71dZ
– CNBC (@CNBC) November 19, 2018
On the foreign exchange market in the Far East, statements by Fed officials, who cautiously commented on global economic prospects, forced the dollar under temporary pressure. The euro temporarily rose to 1.1414 dollars, but later fell to 1.1406 dollars. Against the yen, the us currency was slightly negative at 112.71 yen.
(Cash / Reuters / AWP)