Stocks decline as Apple reports risks over coronavirus impact

18.02.2020 - Davydova Maria
Stocks decline as Apple reports risks over coronavirus impact

Wall Street broke from record highs and Asian shares declined after Apple Inc said it will not reach its revenue guidance for the March quarter due to a slower production and weaker demand amid the virus outbreak.

The news roused investors from optimistic outlook as it was revealed that China’s economic stimulus would do little to underpin the global economy against the epidemic.

S&P500 e-mini futures slipped 0.3% in early trade.

MSCI’s largest index of Asia-Pacific shares outside Japan slid 0.65%; Nikkei dropped 1.0%; and Shanghai shares fell 0.2% from its initial gain in the last 10 sessions.

The Chinese central bank cut interest rate on medium-term lending to reduce the benchmark loan prime rate.

Apple’s manufacturing facilities in China began re-opening but ramps up slower than expected, hinting of the outbreak’s heavier hit on businesses.

Asian tech shares Samsung Electronics was down 2.1%, Taiwan Semiconductor Manufacturing Co dropped 1.7%, and Sony lost 2.6%.

Japan’s Nomura Securities lowered its first quarter growth forecast to 3%, from 3.8% forecast previously.

Yen inched up 0.1%, at 109.75 against the USD; Australian dollar slid 0.4%, at $0.6707; Yuan steadied at 6.9866 per US dollar.

The euro lost 0.1%, at $1.0836, nearing its 33-month low amid a sluggish growth in the region.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue

Help with deposit?