So much for a quiet day before the US midterms
SPY•Asian shares outside Japan fell 1.4% as technology hardware suppliers slid, while European futures were lower and S&P 500 futures edged down. Apple shares fell 2.8% after-hours after the company forecast lower holiday-quarter gross margins and weaker-than-expected services revenue growth.
1. Tech shares weigh on markets
Asian technology hardware suppliers fell, sending the broadest index of regional shares outside Japan down 1.4% to a week-and-a-half low. South Korean shares dropped as much as 4.1%, while Taiwanese shares fell 3.6% and extended losses to 13.3% from an early October record. S&P 500 futures slipped 0.1% for a fourth consecutive day, and European futures were also lower.
2. Apple and rate decisions
Apple shares fell 2.8% in after-hours trading after the company forecast lower gross margins for the holiday quarter, citing rising memory-chip costs, and projected services revenue growth below Wall Street expectations. Australia's central bank raised its cash rate target by 25 basis points to 4.85% in a split vote; some analysts think it may be done hiking for now after 125 basis points of increases this year.
3. Elections and oil
Voting in the US midterm elections was due to begin on Tuesday. Opinion polls favoured Democrats to win the House, while the Senate remained too close to call; prediction markets assigned Democrats a 76% to 77% chance of controlling the Senate. Brent crude rose 0.4% to $105.19 as investors weighed US-Iran peace talks; a US official said the United States had carried out strikes on Iran's Qeshm Island in the Strait of Hormuz.
