Morning Moneybeat Europe: Tech Take a Bite Out of Sentiment

        By Peter Nurse
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        The Breakfast Briefing
        European stocks fell Wednesday, tracking losses in the U.S. where corporate earnings in the previous session widely missed expectations, especially in the technology sector.
        In early trade, the Stoxx Europe 600 was 0.5% lower, deepening a 1% loss suffered in the previous session. U.S. stocks fell Tuesday on the back of weak earnings reports from International Business Machines Corp. and United Technologies Corp.After the U.S. market close, Apple Inc. reported earnings that showed sales of its iPhone had missed some analysts' estimates, sending its shares down 7% in after hours trading and wiping $60 billion off the company's market value. Asian shares also fell.
        In currency markets, the euro extended its gains against the U.S. dollar and was recently 0.2% higher at $1.096. BNP Paribas strategists said that some investors were selling the dollar to take advantage of a rally in recent weeks.
        Brent crude fell 1% in early trade to $56.48 a barrel. Gold was down just as much, at $1,092 per troy ounce.
        Read the full story on market moves so far today.
        -- Josie Cox
        Market Snapshot: FTSE 100 down 0.91%, CAC 40 down 0.44% and DAX down 0.44%. Nikkei finished Wednesday down 1.19%. Hang Seng down 1.17%. Brent crude down 1.07% at $56.43. Gold down 1.0% at $1092.50. EUR/USD at $1.0941. Ten-year Treasury yield higher at 2.33%, Bund yield lower at 0.72%, Gilt yield lower at 2.07%.
        What You May Have Missed on MoneyBeat
        Apple Shares Fall Hard on Earnings Report: Apple shares are down 7% in late trading after the kids from Cupertino reported profit rose 38%, to $10.7 billion, or $1.85 a share, in the fiscal third-quarter, on sales of $49.6 billion.
        Goldman Grows Wary of U.S. Stocks, Turns Bullish on Europe: The brain trust at Goldman Sachs Group is growing wary of U.S. stocks. They're eyeing Europe instead. Analysts at the U.S. investment bank had taken a neutral stance for all regions of the globe in the second quarter, but have steadily been warming to European equities since mid-June. Now, they're tacking a buy recommendation on European stocks for the next three months, following the approval of the Greek bailout deal.
        When Greek Banks Fully Reopen, How Hard Will Investors Be Hit?: Greek banks are finally open, albeit in a limited form. But although the doors are open, the stock market remains closed, and uncertainty remains about the health -- and potential bailout -- of the sector.
        Euro Carry Trade is Back, But Blink and You'll Miss It: A trade that takes advantage of the eurozone's low interest rates is about to come back into vogue, but like many summer trends, expect it to be passe by the fall.
        Former Top Barclays Banker to Launch Investment Firm: One of the U.K.'s top former investment bankers, who resigned at the height of the Libor rate-rigging scandal, has launched a private equity-style company focusing on financial services.
        It's Official: This Is the Most Boring Stock Market in Decades: Does it feel like the stock market has gone nowhere this year? Maybe that's because it hasn't.
        Dealpolitik: Yahoo Tells Activists Alibaba Spinoff Is Off-Limits: For activists hoping to hover around the Yahoo Inc. spinoff of its Alibaba Group Holding Ltd. shares, the message is clear: shoo!
        From The Wall Street Journal
        Apple iPhone Sales, Up 35%, Disappoint Investors: After a series of blockbuster earnings that blew past even the most optimistic of Wall Street expectations, Apple felt the pain of falling short of elevated expectations.
        S&P Upgrades Greece : Ratings firm Standard & Poor's lifted Greece's credit rating by two notches, citing the three-year loan program and EUR7.16 billion ($7.84 billion) in three-month bridge financing secured, in principle, last week.
        Tide Turns for Greece's Shipping Industry: As Greeks debate the fresh austerity measures that are a prerequisite for another bailout, the country's world-leading shipping industry is coming under increasing pressure to carry more of the load.
        The Earth's Most Valuable Bank? Wells Fargo & Co.: Wells Fargo recently surpassed China's ICBC in market value and surpasses all U.S. peers, too, thanks largely to its relatively simple business.
        Hedge Funds Gear Up for Another Big Short : Wall Street is preparing for panic on Main Street. Hedge funds are lining up to profit from potential trouble at some "alternative" mutual funds and bond exchange-traded funds that have boomed in popularity among retirees and other individual investors.
        China's Market Plunge: Where Only 3% of Firms Could Trade : China may have the world's second-biggest stock market after the U.S., but at one point during a roller-coaster ride for investors this month only 93 of 2,879 listed companies were freely tradable--about the same number as trade in Oman.
        As Commodities Tumble, Asia-Pacific Economics Grasp for Growth : The swift decline of prices for commodities from crude oil to coal exposes how some Asia-Pacific economies reliant on those exports have struggled to find new sources of growth.
        BP Faces Rocky Landscape After Deepwater Horizon Settlement: A stalled India project with Reliance showcases the global challenges for the oil giant after the Deepwater Horizon settlement.
        (END) Dow Jones Newswires

        July 22, 2015 04:19 ET (08:19 GMT)

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