European stocks fell from a 20-month high following weaker U.S car sales for April 2017. Apple Inc.’s mixed financial results for the fiscal second quarter and weaker-than-anticipated guidance for the third quarter, also contributed to this. Apple also reported earnings of $2.10 per share and revenue of $52.9 billion for the first quarter of 2017. In spite of reporting better-than-expected earnings per share compared to the analysts’ consensus of $2.02, Apple missed the estimated revenue as the estimated analysts’ consensus was close to $53.02 billion. Following this, the European companies supplying Apple were the ones experiencing the biggest losses in the Stoxx Europe 600 Index today.
Adding to the relatively disappointing Apple results, high expectations of positive company earnings in Europe were slightly curbed. The Federal Reserve is also scheduled to meet today and provide clues on its rate policy. The Fed’s policy merely depends on President’s Trump fiscal stimulus program and its feasibility that will in turn boost inflation.
In a nutshell, investors will be monitoring closely the comments from the policy meeting of the Federal Open Market later today as well as the U.S. Treasury quarterly refunding plans for issuance of longer term debt. As far as Europe is concerned, focus remains on France and the second round of presidential elections on Sunday. Earning releases maintain at the top of this week’s agenda, with Facebook Inc., HSBC Holdings Plc, Time Warner Inc., and Royal Dutch Shell Plc scheduled to announce reports and guidance this week.