Global markets are moving on the negative territory on Thursday as a government shutdown in the US entered its 13th day and Apple cut its Q1 revenue guidance, spurring fresh concerns about global growth.
Brexit-related worries also kept investors nervous. The German Economy Minister Peter Altmaier said in an interview that Britain’s impending departure from the European Union poses a big risk, but domestic demand is still fueling growth in the German economy.
Asian markets recap
Most Asian stock indexes ended today’s trading session on red on the background of the volatile session on the New York Stock Exchange on Wednesday, which ended with slight increases.
Asian markets have tried to recover from the losses accumulated during yesterday’s session but generally remained focused on concerns about the possible continuation of the US-China trade war.
On the Chinese markets, the continental index Shanghai Composite dropped by 0.04%, ending the session at 2,464.36 points.
The Hong Kong’s index Hang Seng continued its negative trend on Wednesday, marking a drop of 65.99 points, or 0.26%, to 25,064.36 points.
In South Korea, the index Kospi declined by 0.81% to 1,993.70 points, while shares of Samsung Electronics and SK Hynix declined by 2.97% and 4.79%, respectively.
The Australian index S&P ASX 200 finished the session on green territory, adding 75.60 points to its value, reaching a level of 5,633.40 points. The best performing within the benchmark were the energy companies. The stocks of Santos rose by 3.98%, while Oil Search rose by 2.59%.
The Tokyo Stock Exchange remained closed today.
The slowing global economic growth continues to raise concerns around market participants.
At the end of yesterday’s session in Asia was released the data on the slowdown in manufacturing activity in a number of Asian countries and especially in China. Poor results include countries like Malaysia, Taiwan, Singapore and South Korea.
The slowing growth and inflation below or around the target range in most countries will force Asian central banks to temporarily end the monetary policy tightening cycle this year.
European markets mid-session recap
German stocks move lower and decreasing by 1.33% to 10,439.42 points at 11:10 GMT. The chip supplier Dialog Semiconductor slumped more than 9% on concerns that China’s slowing economy could hurt demand.
French stocks fell on Thursday with main index CAC 40 moving down by 1.27% to 4,629.79 points at mid-session. The drug giant Sanofi was moving lower after it decided not to extend its collaboration with MyoKardia beyond the initial research term, which ended on December 31, 2018. Banks BNP Paribas, Credit Agricole, and Societe Generale were up between 0.2% and 0.6%.
A rare revenue warning from smartphone giant Apple triggered a new wave of selling in UK shares on Thursday as investors’ fears of slowing global growth were confirmed and miners, oil, and luxury stocks fell. The British index FTSE 100 fell by 0.44% to 6,704.48 points at 11:10 GMT, outperforming European peers thanks to a strong update by retailer Next which helped sentiment.
Wall Street pre-session recap
Dow futures point to a decline of more than 350 points at the open after the technology giant Apple slashes guidance.
Apple said it sees first-quarter revenue of 84 billion USD versus previous guidance of a range of 89 billion USD and 93 billion USD. The analysts expected revenue of 91.3 billion USD for the period, according to the consensus estimate from FactSet. Apple blamed most of the revenue shortfall for struggling business in China. But the company also said that upgrades by customers in other countries were “not as strong as we thought they would be”.
The futures on blue-chip index Dow Jones Industrial Average are down by 375.00 points at 6:30 AM ET, indicating a negative opening with 372.24 points. The other Wall Street indexes S&P 500 and Nasdaq are also on red with expectations for drop by 42.03 points and 173.62 points, respectively.