- Apple setback after court ruling
- Alibaba and Hang Seng fall
- US PPI reaches record levels
Stocks are trading a tad firmer in the early part of the session, after a tough-ish week. US indices fell for a fifth straight day on Friday, weighed down by Apple’s (AAPL) setback, with the stock falling over 3 per cent after a court dealt a big blow to its app store payment model. Tesla (TSLA) shares fell 2.5 per cent after Cathie Wood’s Ark group sold down it's holdings. More than a whiff of mega cap tech/growth fading – question is whether we get the rotation into cyclicals to keep the market grinding higher. Dip buyers failed to come in last week so looking perhaps to see whether there are further losses to come. Futures are this morning trading in the green. Meanwhile inflation is still a problem, with US producer prices rising 8.3 per cent.
China’s regulatory crackdown on big tech continues, with Beijing planning to break up Ant’s mobile platform Alipay, sending Alibaba (9988) shares down 5 per cent in Hong Kong and the broader Hang Seng Index (HSI) down by 2 per cent. Nevertheless, there is a mild risk-on feel to the start of the new trading week.