Jump to content

'Flash Crash' as Apple Releases Revenue Warning - EMEA Brief 03 Jan


Guest JoeIG

1,084 views

  • US Index Futures fell and Asian shares toppled on Thursday after a revenue warning from Apple on its Q1 results adds to fears of slowing global growth. Dow futures point to a decline of over 400 points at the open. 
  • The Dow is currently trading at 23015, the S&P at 2476 and the Nasdaq at 6211. 
  • MSCI's Index of  Asia-Pacific shares excluding Japan dropped 0.6%, whilst the Nikkei futures fell 2.2%. 
  • The news from Apple sparked a 'flash crash' in the currency markets, sending the safer assets such as the Japanese Yen soaring against most other currencies, rising by as much as 3.7% to 104.87 against the USD. In contrast, the AUD toppled 3.5% to 0.6741 against the USD, its lowest level in a decade.
  • US crude rose 2.5% to settle at $46.54 yesterday, on the back of a fall in Saudi oil exports. 
  • Gold remains a safe haven for investors as it continues its rise amid a volatile global market, currently trading at $1290.01 an ounce. 

UK, US and Europe: Apple has shocked investors with a rare revenue warning on its Q1 results, wiping 8 percent from its share price in after-market trading. The news has stoked investor fears over the outlook for the global economy as trade tensions and weak company earnings hit the equities market hard in the latter half of 2018. The warning sparked a flash sell-off among most major currencies such as the US and the Australian dollar, resulting in a rise in the Japanese Yen as the currency is seen as a safe haven in times of uncertainty. Apple attributes the warning to disappointing iPhone and Apple Watch sales in China, blaming trade tensions and the country's recent economic weakness for the declining demand.

Looking ahead, we have the ADP Employment Change figure release at 1:15pm GMT and is expected to be a similar figure with last month, with the release of US Non-farm Payrolls tomorrow. The US manufacturing PMI is also set to come at 3pm GMT, forecast to be lower than the previous figure, indicating a possible industry contraction. 

Economic calendar - key events and forecast (times in GMT)

image.png

Source: Daily FX Economic Calendar

Corporate News, Upgrades and Downgrades

  • Tesla misses Wall Street estimates, delivering 90,700 vehicles in its fourth quarter last year. The car-maker is also cutting prices on all its models by $2000 to help offset a reduction in federal tax credits for electric car drivers. 
  • Apple shares drop 8% after its warning on Q1 results as the sales for its flagship product, the iPhone, disappoint.
  • Next's in-store sales fell 7% in its last quarter of 2018, however online sales were up by 14.9%.
  • Blake Nordstrom, co-president of the American chain of luxury department stores, Nordstrom, has died at the age of 58 after battle with cancer.

IGTV featured video

Information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary

0 Comments


Recommended Comments

There are no comments to display.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...
us