Global Markets - Apple's shock warning sends investors to safe-haven assets
A revenue warning from Apple Inc
Technology stocks led a selloff in Asian, European and U.S. stock markets after Apple, blaming weaker iPhone sales in China, cut its revenue forecast for the first time in nearly 12 years. Apple`s U.S.-listed shares were last down 9.7 percent.
That heightened concerns that sluggish global growth may be reflected in the United States, where corporate earnings season is set to kick off in a few weeks.
Survey data from the Institute for Supply Management showed U.S. factory activity slowed more than expected in December, sending stocks on Wall Street lower.
Treasury yields fell and prices surged after the U.S. manufacturing activity data, extending overnight losses prompted by the Apple warning that sent investors fleeing to safe-haven instruments. The two-year Treasury yield
Benchmark 10-year notes
"The Apple pre-announcement has roiled the market ever since the news came out," said Michael O`Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. "People upset about the uncertainty surrounding global markets right now are looking for safety in Treasuries."
In the U.S. equity market, the Dow Jones Industrial Average <.dji> fell 610.35 points, or 2.61 percent, to 22,735.89, the S&P 500 <.spx> lost 55.63 points, or 2.22 percent, to 2,454.4 and the Nasdaq Composite <.ixic> dropped 184.36 points, or 2.77 percent, to 6,481.58.
MSCI`s gauge of stocks across the globe <.miwd00000pus> shed 1.24 percent.
Currency Flash Crash: https://tmsnrt.rs/2RvrCQiCURRENCIES
Apple`s news also unsettled the currency markets, with the safe-haven yen climbing against the dollar
Earlier, in what some market watchers called a "flash crash," the yen rose as much as 4.4 percent versus the dollar after a flurry of automated orders triggered a massive move in Asia, where trade was thin with Japanese participants still away for the New Year holiday.
The dollar index <.dxy>, measuring the greenback against a basket of six other currencies, was last down 0.5 percent. The euro
Keeping with the risk-off theme, gold prices hit a 6-1/2-month peak. Spot gold
Yet Brent crude
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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