Apple's Low Revenue Cause Shares Drop in Major Markets in the World

Asian and American stocks fell on Thursday after a rare Apple Inc. revenue warning raised concerns about slowing global growth and weaker profits.

The California-based technology giant has blamed weak iPhone sales, warning about revenue in its latest quarter, its first alert since 2007. Your stock has fallen by 8%.

The news triggered alerts on the markets, with investors rushing to less risky assets as the yen rose against most major currencies in a matter of seconds.

US stock futures pointed to another tough day on Wall Street, with Nasdaq falling 2,2 percent and S & P 500 falling 1,3 percent.

Shares in China and Hong Kong lost gains as investors expected Beijing to take further steps to support the Chinese economy.

China's central bank said on Wednesday it was adjusting the policy to benefit more small firms struggling to raise funds in their latest move to ease tensions in the private sector, a major job creator.

Although more support for monetary and fiscal policy is expected in the coming months, in addition to modest measures last year, some analysts are wondering whether a more vigorous stimulus will be needed to stabilize the world's second largest economy.

Apple's surprise announcement weighed on tech stocks in Asia, mostly in Taiwan and South Korea. Korean stocks were 1,3 percent lower and shares in Taiwan lost 1,4 percent.

Apple specifically underscored China's slowing growth and trade tensions between China and the US, exacerbating investor concerns about the health of the global economy.

And still in this negative mood, a meeting between US President Donald Trump and Congressional leaders did not produce any agreement to end a partial shutdown of the government.

Trump's demand for $ 5 billion in funding for a fence along the US-Mexico border triggered the shutdown that affected about a quarter of US federal government and 800.000 federal workers.

World Reactions

The dollar was 1,6% weaker against the yen, worth 107,15 compared, while the Australian dollar hit levels against the yen not seen since 2011.

The euro rose 0,2%, buying U $ 1,1365, and the dollar index, which tracks the US currency against the main rivals, was 0,3% weaker with 96,503 points.

US crude fell 1,8 percent to 45,71 dollars a barrel after a sharp rise on Wednesday. Brent crude fell 1% to $ 54,38. The slowdown in global growth is expected to coincide with an increase in oil supply, depressing prices.

Source: Asahi

0 0 vote
Article Rating
Notify of

This site uses Akismet to reduce spam. Learn how your feedback data is processed.

Inline feedback
View all comments