Try as they might to ignore the coronavirus, when Apple (NASDAQ:AAPL) talks investors listen, the tech mega-brand prompting a red start for Europe following sharp losses in Asia.
Experiencing a ‘slower return to normal conditions’ than anticipated, Apple (NASDAQ:AAPL) warned that revenues for this current quarter would fall short of expectations. That’s because ‘worldwide iPhone supply will be temporarily constrained’ by China’s outbreak-related manufacturing issues.
Tim Cook and co. weren’t the only ones sounding alarm bells on Tuesday. South Korea claimed it was facing an economic ‘emergency’ due to the illness, while in its half year update BHP Group maintained its guidance but stated it will revise its estimates if the virus isn’t ‘demonstrably well contained within the March quarter’. Glencore (LON:GLEN) also said it was monitoring the situation closely, after posting better than forecast full year earnings.
Though not disastrous, especially when compared to some of the losses seen early on in the outbreak, Europe nevertheless got off to a bad start. The FTSE barely held above 7400 as it fell 0.4%; the DAX shed 100 points, slipping from its all-time highs, while the CAC was back at 6050 following a 0.6% fall. Looking ahead a bit and the Dow Jones is facing an Apple-led 200 point drop when the bell rings on Wall Street.
Investors could get a further taste of what the economic atmosphere is like regarding the coronavirus with the latest ZEW economic sentiment readings. The German figure is forecast to drop from 26.7 to 20.0, with the Eurozone-wide number down from 25.6 to 21.3.
Sterling was also down this Tuesday, slipping 0.2% against dollar and euro alike ahead of the morning’s UK jobs data. Wage growth, including bonuses, is expected to fall from 3.2% to 3.1% month-on-month, with the claimant count change up from 14.9k to 20.2k. As for the unemployment rate, that’s expected to remain unchanged at 3.8%.
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