Equities retreat after Apple revenue guidance downgrade - 4.1.2019

Dollar weakens on slower manufacturing sector data

US stock market gave back all its previous session gains on Thursday as investor confidence was undermined by Apple’s first downgrade of its quarterly revenue forecast in over fifteen years. The S&P 500 lost 2.5% to 2447.89. The Dow Jones industrial average tumbled 2.8% to 22686.22. Nasdaq composite index dropped 3% to 6463.50. The dollar weakening resumed as the Institute for Supply Management reported US manufacturing grew at the slowest pace in two years in December: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.4% to 96.26 and is lower currently. Stock index futures point to higher openings today.

CAC 40 leads European Index losses

European stock markets accelerated retreat on Thursday. Both the GBP/USD and EUR/USDs turned higher and are rising currently. The Stoxx Europe 600 index fell 1%. Germany’s DAX 30 lost 1.6% to 10416.66. France’s CAC 40 fared the worst tumbling 1.7% and UK’s FTSE 100 ended 0.6% lower at 6692.66. Futures indicate mixed openings today.

Nikkei falls while Asian indices rebound

Asian stock indices are mostly higher buoyed by a report US-China trade talks will start Monday in Beijing. Nikkei fell back 2.3% to 19561.96 as markets reopened after the New Year holiday with yen continuing its slide against the dollar. Chinese indices are higher after Caixin report China’s services sector expanded in December: the Shanghai Composite Index is up 2.1% and Hong Kong’s Hang Seng Index is 2.3% higher. Australia’s All Ordinaries Index retraced lower 0.3% with Australian dollar continuing its climb against the greenback.

Brent inches higher

Brent futures prices are edging higher. The American Petroleum Institute private industry group reported yesterday US crude inventories fell by 4.5 million barrels last week. Brent for February settlement closed 1.9% higher at $55.95 a barrel on Thursday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.