Apple CEO said China’s economy is slowing down
The Chinese stock exchanges are massively affected by retail traders and investors that are believed to be motivated by the short-term view. On Wednesday according to CNBC Apple CEO Tim Cook said he believed that the continuing trade war among China and the U.S. “put additional pressure” on China’s economy. Apple said that many negative circumstances are the reason for the lowered guidance, including a lower-than-expected iPhone revenue. Apple said the lower-than-expected income happened “essentially in Greater China.” Later after Apple’s CEO comments, Asia biggest economy, China tech sector dropped lightly. Shenzhen component and Shenzhen composite lost 0.449% and 0.458% respectively. China’s Chinext composite went down by almost 0.5% and the recent economic numbers from China have shown a slowing economy.
Biggest yen surge in near a decade but Aussie falls
On Thursday Yen rose against its rivals. What is more important is the fact that Yen broke important technical support levels. The increased global growth uncertainties drove most traders into safe haven-assets in moves that gained momentum by weak holiday volumes.
The revenue warning from Apple was an isolated event and very rare but added to concerns about weakening global growth. On Thursday, Market members retreated to the safety of the safe-haven Japanese yen, which increased about 1.5% versus the greenback getting to 107.26. In early Asian trade, the dollar fell to a day low of about 104.90 yen. The Australian dollar usually is viewed as a measure of global risk appetite. In early Asian session it dropped to its lowest level in almost a decade to $0.6774.
Oil prices slide
On Thursday Oil dropped due to unstable stock and currency markets, while experts predicted an economic slowdown for the New Year just as crude supply is growing globally. International Brent crude futures fell about 1% to $54.30 a barrel while the U.S. West Texas Intermediate crude oil futures declined by around 2% from their last close.
Markets were disturbed by a more than 2.5% fall of the greenback versus the yen, and after Apple cut its sales forecast.
Gold is safer than the Greenback
Today Gold climbed to a half a year top while fears about global economic retardation increased safe-haven appetite. What supports the move to a safer asset is also the softer greenback.
U.S. gold futures gain about .5% at $1,290.19 per ounce while Spot gold reached the $1,290.09.Peter Fung, head of dealing at Wing Fung said “The weaker dollar lent some support for gold. People are more interested in gold as the stock markets are under pressure and are looking at gold as a safe haven.”