Market Buzz: Apple and the Fed in the limelight

Traders work on the floor of the New York Stock Exchange (NYSE) in New York.(AFP Photo / Stephen Chernin)

Traders work on the floor of the New York Stock Exchange (NYSE) in New York.(AFP Photo / Stephen Chernin)

Russian markets are expected to react sharply to comments by US Federal Reserve Chair Ben Bernanke, while gains in China are likely to boost indices.

­Russian indices moved higher Monday, supported by strong corporate results in the retail and resource sectors. The MICEX and the RTS both jumped 1.2%.

European stock markets closed in the red Monday as investors awaited a speech by US Fed Chief Ben Bernanke on the country’s monetary policy. The Stoxx Europe 600 fell 0.4% and the German DAX 30 rose 0.2%, led by gains of chemicals group BASF SE. The French CAC 40 rose 0.1%, supported by banking.

US stocks closed mostly lower on Monday after Apple announced a cut in iPhone production. Bernanke’s pledge that the Fed’s easing policy has a low risk of inflation also failed to cheer investors. The Dow Jones itched 0.1%, the S&P 500 shed less than 0.1% and the Nasdaq Composite lost 0.3%. Shares of Apple fell 3.6% in a $17bn selloff after the WSJ reported that LCD panel producers cut output for Apple amid slower-than-expected global sales of the iPhone 5.

Asian stocks traded mixed Tuesday, supported by Japanese gains on the weaker yen; losses by Apple also hit the tech sector. Japan’s Nikkei rose 0.7% to its highest level since the end of April 2010. Hong Kong’s Hang Seng Index shed 0.3% and the Shanghai Composite added 0.4%, extending gains on speculation that mainland China would open stock markets to foreign investors. Australia’s S&P/ASX 200 declined 0.3%, and South Korea’s Kospi shed 0.9%.