Apple Inc.'s (APPL) German-listed shares notched solid gains in early trading in Frankfurt as the global tech-sector weakness appeared to wane after two days of selling that trimmed more than $15 billion from global portfolios.
Apple shares were marked 1.9% higher in the opening hour of trading on the Deutsche Boerse and changing hands at €130.60 each. Facebook Inc.'s (FB) German shares were also on the rise, gaining 1.3% to €132.90 each. Other U.S. tech firms with German listings that make up the so-called 'FAAAMG' sector complex, including Amazon Inc. (AMZN) , Alphabet (GOOGL) and Microsoft Inc. (MSFT) , were trading 0.94%, 1.2% and 1.18% higher respectively as the session opened.
The gains suggest a pause in the global sector selloff that was sparked a twin set of reports last Friday that cautioned on the components in Apple's upcoming iPhone 8 series and warned that investors may be mispricing sector risk owing to subdued market volatility.
"We believe low realized volatility can potentially lead people to underestimate the risks inherent in these businesses including cyclical exposure, potential regulations regarding online activity or antitrust concerns or disruption risk as they encroach into each other's businesses," wrote Goldman analyst Robert Boroujerdi. "Mechanically, we expect that as the realized volatility of a stock drops, more passive "low vol" strategies buy the stock, pushing up the return and dampening downside volatility. The fear is that if fundamental events cause volatility to rise, these same passive vehicles will sell and exacerbate downside volatility."
European tech stocks, which fell the most in more than year in Monday trading, were trading modestly higher in the opening 30 minutes with the Stoxx Europe 600 Technology index marked 1.2% higher at 425.51 points, pegging the year-to-date gain at 15.5%.
Apple's New York listed shares were marked 0.19% in premarket trading, indicating an opening price of $145.60 each after yesterday's 2.46% decline.