European stocks and U.S. equity-index futures slumped after Apple (AAPL) added to global growth concerns with a cut in its sales outlook. Stocks in Asia were mixed, while there were wild moves in the currency markets as the yen surged.
XTechnology shares led the Stoxx Europe 600 Index lower after the iPhone maker cut its first-quarter guidance for the first time in almost two decades, citing an unforeseen slowdown in China and fewer upgrades to its flagship mobile device. Contracts on the Nasdaq index led the drop for U.S. futures, dipping as much as 2.9 percent. In currency markets, the yen jumped and the Australian dollar slumped to the lowest in almost 10 years as algorithmic programs amplified sharp gyrations amid thin liquidity during a Japanese holiday. Treasuries were steady, while most European bonds climbed.
Apple's warning and a weak reading on Chinese manufacturing come as stark examples to investors that the protectionist showdown is starting to have an impact on economic activity, even after U.S. President Donald Trump sounded positive tunes about reaching a trade deal with his counterpart Xi Jinping over the weekend. In Washington, leaders were unable to strike a deal to end a partial shutdown of the federal government at a meeting Wednesday, adding to the gloom that's gripped markets for the past month.
"That Tim Cook and his company mentioned China as the reason behind the downturn in the company's outlook seemed to hit exactly the pressure point traders and investors were already alarmed over," Greg McKenna, markets strategist at McKenna Macro and a three-decade foreign-exchange market veteran, wrote in a note to clients. "That is, the China and global slowdown which seems to have been confirmed by Wednesday's global manufacturing PMI data."
Elsewhere, West Texas oil again slipped under $46 a barrel as it reversed a rally on the back of Saudi Arabia trimming exports. Gold gained.
Here are some events investors may focus on in coming days:
The U.S. December jobs report is due Friday Fed Chair Powell is interviewed with predecessors Janet Yellen and Ben Bernanke at the annual meeting of the American Economic Association Friday. Atlanta Fed President Raphael Bostic joins a panel on long-run macroeconomic performance.
And these are the main moves in markets:
Stocks
The Stoxx Europe 600 Index fell 0.8 percent as of 8:18 a.m. London time to the lowest in a week on the largest fall in a week. Futures on the S&P 500 Index sank 1.5 percent to the lowest in more than a week. The U.K.'s FTSE 100 Index fell 0.5 percent to the lowest in a week on the largest fall in a week. Germany's DAX Index sank 0.9 percent, reaching the lowest in a week on the first retreat in a week. The MSCI Emerging Market Index dipped 0.6 percent to the lowest in more than two months. The MSCI Asia Pacific Index advanced 0.2 percent.
Currencies
The Bloomberg Dollar Spot Index decreased 0.1 percent. The euro climbed 0.2 percent to $1.1364. The British pound dipped 0.4 percent to $1.2558, the weakest in more than three weeks. The Japanese yen surged 1 percent to 107.78 per dollar, the strongest in more than eight months on the biggest jump in two weeks.
Bonds
The yield on 10-year Treasuries rose less than one basis point to 2.62 percent. Germany's 10-year yield fell less than one basis point to 0.16 percent, the lowest in more than 20 months. Britain's 10-year yield dipped two basis points to 1.191 percent, the lowest in more than three weeks. Italy's 10-year yield jumped four basis points to 2.728 percent, the biggest surge in almost two weeks.
Commodities
West Texas Intermediate crude decreased 2.2 percent to $45.50 a barrel, the first retreat in a week. Gold advanced 0.4 percent to $1,289.25 an ounce, reaching the highest in almost seven months on its sixth consecutive advance.
The post Apple Woes Add To Turmoil For Stocks; Yen Surges: Markets Wrap appeared first on Investor's Business Daily.
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