Investors worried about Middle East tension, US growth and Greece’s financial woesLeading shares are heading lower on a combination of geopolitical and economic worries, and as usual in such circumstances, investors have turned to gold as a haven in the storm.Gold has added $18 an ounce to $1213 while silver has also moved higher, helping precious metal miners buck the market’s slide.US durable goods data came in significantly worse than forecast, but with the Federal Reserve continuing to advocate the line that there’s still room for a rate hike in the summer, some investors appear to be taking fright at the prospect. Arm is down...this morning as Wednesday’s US tech stock sell off proves contagious and continues to spook the global markets. The US rout was led by the likes of Apple, Intel and Microsoft. Arm, which supplies the components that make Apple’s devices work, has been trading at highs recently but there are concerns that the markets for smartphones and tablets are becoming saturated leading to many consumers opting for cheaper devices with the same guts as fashionable market leaders, just without the badge. Crucially, these pay lower royalties to parts suppliers like Arm. With such tight competition in the sector, it’s hardly surprising that analysts are downgrading those stocks that supply an overpopulated market, seeing them as now overvalued. Continue reading...
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