Tech and mining stocks lead markets lower

Falls for technology and mining stocks dragged equity markets lower yesterday, with the FTSE in London posting the biggest slide among western European markets.

The FTSE 100 was hit by factors including quarterly results from US technology giant Apple, which prompted a tumble in chip-maker ARM Holdings, as well as hints that a rise in interest rates could be drawing nearer.

Apple’s underwhelming revenue forecast had knock-on effects on tech stocks across Europe and the US.

DUBLIN

The Iseq index bucked the trend, gaining 0.8 per cent.

Building materials group CRH climbed 1.4 per cent to €26.88, boosted by data that showed a 26 per cent jump in the value of US highway contracts awarded last month. CRH is the largest provider of raw materials in the US highway construction sector.

Kingspan climbed briefly in early trading but closed the session down 0.9 per cent at €22.20. Davy Research earlier published a note highlighting the insulation-maker's potential to benefit from what it called "big shed" building activity in the UK.

There were gains for Ryanair, which added 0.8 per cent to finish at €12.50 following a positive trading update from Easyjet. The company's share buyback scheme continued. Drinks group C&C also advanced, closing up 0.6 per cent at €3.59.

However, paper and packaging company Smurfit Kappa fell 0.6 per cent to €27.78.

LONDON

A slump in mining stocks and

ARM Holdings

sent UK stocks to their biggest decline since July 7th. The FTSE 100 index of blue-chip stocks declined 1.5 per cent.

ARM tumbled 6.6 per cent to 970 pence, its biggest drop since 2013, after reporting sales that missed analysts’ estimates and as Apple, which uses its chip technology, sold fewer-than-estimated iPhones.

BHP Billiton plunged the most since 2011, losing 5.7 per cent after saying petroleum, copper and coal output would drop. A gauge tracking mining stocks retreated 4.6 per cent to the lowest level in six years as commodities resumed a decline.

EasyJet's shares took flight after saying sales in the summer period were recovering and pretax profit would increase by as much as 14 per cent.

Its shares gained 4.9 per cent, while IAG, the British Airways owner that is buying Aer Lingus, advanced 1.7 per cent.

EUROPE

European shares dropped yesterday, dragged down by tech stocks. As well as ARM’s 6.6 per cent plunge in London, German chip-maker

Dialog Semiconductor

, another company with ties to Apple, tumbled 5.2 per cent. Frankfurt’s Dax and Paris’s Cac 40 both finished lower.

Credit Suisse shares were among the worst performers on the Swiss stock market after the Financial Times reported the bank's new chief was sounding out investors for support on a potential deal to bolster asset management.

NEW YORK

Wall Street declined in early afternoon trading, with the tech-heavy Nasdaq composite falling more than 1 per cent after disappointing results from technology giants including

Apple

, the world’s largest publicly traded company.

Apple shares slumped as much as 6.7 per cent to $121.99, a day after the iPhone maker’s revenue forecast for the fourth quarter fell below expectations.

Microsoft fell as much as 4 per cent to $45.35 after reporting its biggest quarterly loss, with the company writing down its Nokia phone business and demand falling for its Windows operating system.

Yahoo was down 0.8 per cent at $39.38 after it forecast lower-than-expected revenue for the current quarter.

Positive results from Coca-Cola and Boeing helped offset the losses. – (Additional reporting: Bloomberg/Reuters)