The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 24, 2023. REUTERS/Staff Acquire Licensing Rights
A look at the day ahead in European and global markets from Ankur Banerjee
Investors probably can’t wait for the week to end, with worries over China’s curbs on iPhones and the dollar’s resurgence in the past few weeks casting a long shadow over the markets.
Apple (AAPL.O) has seen about $200 billion (that’s eleven zeros in total) wiped from its market capitalisation in two days on reports of China curbing iPhone use by state employees.
It all comes ahead of an Apple event next week where the $2.78 trillion company is expected to unveil its iPhone 15 line-up, as well as new smartwatches.
Meanwhile, China’s Huawei Technologies on Friday started presales for its Mate 60 Pro+ smartphone, adding a new version to a series that has captured global attention for revealing the Chinese tech firm’s success in beating back against U.S. sanctions.
That has resulted in the dollar’s rampaging run in the past few weeks. Against a basket of currencies, the dollar is set to clock an eighth straight week of gains. The last time it had a similar run was in 2014.
A Reuters poll of forex strategists suggests that the dollar’s strength will be difficult to overcome for most major currencies by the end of the year.
And so with Europe waking up, investors are likely to have a volatile end to the week, with futures indicating a mixed open.
The pan-European STOXX 600 index (.STOXX) has fallen for seven straight days, its worst string of losses since February 2018.
Investor focus will also be on debt-ridden French supermarket retailer Casino (CASP.PA) after the markets operator Euronext (ENX.PA) said the retailer will be excluded from Paris’ SBF-120 equity index (.SBF120) of major companies.
Key developments that could influence markets on Friday:
Economic events: Germany’s inflation data for August
Reporting by Ankur Banerjee; Editing by Kim Coghill
Our Standards: The Thomson Reuters Trust Principles.