The Dow and S&P 500 were lower on Tuesday afternoon as a sales warning from tech bellwether Apple highlighted the impact of the coronavirus outbreak on global supply chains.
Wednesday, 19th February, 2020
China's blue-chip stocks ended lower on Tuesday as Apple warned that it was unlikely to meet its March quarter sales forecast as the coronavirus slowed production and weakened demand in China. The blue-chip CSI300 index closed 0.5 per cent lower, with its financial sector sub-index shedding 1 percent. The Shanghai Composite index was flat at 2,984.97. Manufacturing facilities in China that produce Apple's iPhone and other electronics have begun to reopen, but they are ramping up more slowly than expected, Apple said. That will mean fewer iPhones available for sale around the world. Hong Kong stocks fell on Tuesday as Apple Inc's revenue warning due to slow production and weaker demand in virus-hit China took a toll on technology stocks. At the close of trade, the Hang Seng index was down 429.40 points, or 1.5 percent, at 27,530.20. The Hang Seng China Enterprises index fell 1.4 percent to 10,805.15. Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.04 percent, while Japan's Nikkei index closed down 1.4 percent.
European shares dropped as a revenue warning from Apple hammered iPhone parts makers and underlined the impact of the coronavirus outbreak on global supply chains. However, the pan-European STOXX 600 index ended off session lows helped by defensive buying as well as merger activity among Italian banks.
The Dow and S&P 500 were lower as a sales warning from tech bellwether Apple highlighted the impact of the coronavirus outbreak on global supply chains. But indexes were well off their lows of the day and the Nasdaq edged higher as Apple Inc trimmed its losses. The world's most valuable technology firm said it would fall short of its recently announced quarterly sales target because of slower iPhone production and weaker demand in China. Its shares were last down 1.8 percent. The Dow Jones Industrial Average fell 141.09 points, or 0.48 percent, to 29,256.99, the S&P 500 lost 7.08 points, or 0.21 percent, to 3,373.08 and the Nasdaq Composite added 9.89 points, or 0.1 percent, to 9,741.06.
Ahead of the local open SPI futures are 4 points higher at 7050.
|Foreign Equities||Close||Change||% Change|
|Dow Jones (US)||
|FTSE 100 Index||7382||-51||-0.69|
|Nikkei 225 (Japan)||23194||-329||-1.40|
|Oil - West Texas||/bbl||52.3||0.2||
|Currency||Close||Pts Change||% Change|
|$A vs $US||0.6686||-0.0022||-0.33|
|$A vs GBP||0.5144||-0.0012||-0.23|
|$A vs EUR||0.6196||0.0006||0.10|
|$A vs YEN||73.40||
|$A vs NZD||1.0462||0.0051||0.49|