Article / 30 August 2016 at 11:27 GMT

Mid-session Europe: EU bloodies the nose of Apple

Saxo Markets


Foreign exchange
Apple may be nursing a wound in the runup to the US open after the European Union Commission slapped the technology giant with a $14.3bn fine Tuesday in back taxes related to its Irish location. While that might make for interesting viewing later on the share price, it has been a positive session for equities with all the major European indices in positive territory.


  • Germany Aug Preliminary CPI (0.1 m/m; 0.5% y/y exp.)                 (1200 GMT)

  • US June SP/Case-Shiller HPI                                                           (1300 GMT)

  • US Aug Consumer Confidence (97.0 exp.)                                       (1400 GMT)

Forex developments

USD maintained its recent levels vs. majors today, and it looks like market needs further slate of better US data to add on new longs. EURUSD was stable overnight, in our view the further weakness will persist towards 1.1000 should 1.1100 be broken on the downside. 1.1200 works as a resistance level so far.

GBPUSD is approaching an important level at 1.3000. AUDUSD weakness continued overnight, and not much is expected from the upcoming Reserve Bank of Australia meeting and our strategist chief John J Hardy initiated a short position in the pair yesterday.

Fed Vice Chairman Stanley Fischer was interviewed on Bloomberg TV today, some of his comments below: reiterated rate path depended on economic progress, Fed not planning to go on negative rates, economy close to full employment, productivity is very slow at the moment.


Market started slightly bid with bullish sentiment for USD but a lack of action has turned the market to selling mode.

USDJPY still see some interest to buy topside mostly intra week and next week. It seems the market wants to be long strike around 103.50 while a strike around 106 is less interesting. In USDJPY there should be a 1.4 billion strike 102.40 for expiry today.

AUDUSD slightly bid especially in the 3-6 month area but nothing special.

Fixed income

European markets followed on from positive sessions in both the US and Asia. Stoxx 600 is up nearly 0.5% on average volume with all sectors in positive territory apart from metals and mining names due to weak metal prices. Banks and techs are leading the best performers.

Today’s weakness in metal prices sees the major names lower – Randgold down 4.10%, Rio Tinto down 3.75%, Glencore down 3.20%, BHP Billiton down 3% and Antofagasta down 5%.

Hershey fell after hours in the US after Mondelez said it was walking away from takeover talks.

Apple has been ordered to repay up to €13 billion in tax plus interest after the European Commission said Ireland illegally slashed the company’s tax bill. The stock is trading $2 lower pre market.

Unicredit is up 2.1% after reports suggest they are weighing up combining Pioneer, Asset Management unit, with Intesa.

Wirecard is up 4.1% after the company enters Barclay’s European Portfolio. 

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Mid-session Europe is part of TradingFloor's stable of commentary running through from the US close, through Asia to the European session. Click below to keep abreast of all the developments as they happen.


Apple's taken a $14.3bn hit from the EU Commission over back taxes. Photo: iStock

— Edited by Martin O'Rourke

The Global sales Trading desk is a multi-asset team providing customised trading solutions


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