European shares dropped in early trading on Wednesday, led lower by
technology stocks after disappointing results from Apple, as the
quarterly earnings season gathered pace in Europe and on Wall Street.
The
FTSEurofirst 300 index of top European shares was down 0.3% at 1 591.53
points by 10:37. It fell 1.15% in the previous session.
The STOXX Europe 600 Technology index shed 1.3%, with chip designer Arm Holdings among those falling the most. It fell 3.7% after the results from Apple, a major customer, despite posting a 32% rise in second-quarter profit.
"Of course Apple is a really big company, and having disappointed a little bit on the sales side of things, does tend to reverberate around the world in technology stocks...but we would consider that to be just normal volatility," said Wouter Sturkenboom, a senior investment strategist at Russell Investments.
"The Greek resolution is now largely priced into European markets, so going forward we're more focused on the European fundamentals ... which we think are very favourable, so we continue to hold European equity overweight in the back of that view."
Danish lender Danske Bank rose the most, up 5.2% after a significant earnings beat.
Europe's second-biggest budget carrier, easyJet, also gained, jumping 4.7% on guidance for annual profit growth of up to 14%.
"With all the concerns that the market has had about excess capacity in the market and the likely impact on yields, we believe that these results will be well received," Numis analysts wrote in a note.
The STOXX Europe 600 Technology index shed 1.3%, with chip designer Arm Holdings among those falling the most. It fell 3.7% after the results from Apple, a major customer, despite posting a 32% rise in second-quarter profit.
"Of course Apple is a really big company, and having disappointed a little bit on the sales side of things, does tend to reverberate around the world in technology stocks...but we would consider that to be just normal volatility," said Wouter Sturkenboom, a senior investment strategist at Russell Investments.
"The Greek resolution is now largely priced into European markets, so going forward we're more focused on the European fundamentals ... which we think are very favourable, so we continue to hold European equity overweight in the back of that view."
Danish lender Danske Bank rose the most, up 5.2% after a significant earnings beat.
Europe's second-biggest budget carrier, easyJet, also gained, jumping 4.7% on guidance for annual profit growth of up to 14%.
"With all the concerns that the market has had about excess capacity in the market and the likely impact on yields, we believe that these results will be well received," Numis analysts wrote in a note.
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