Every year in early autumn Apple holds its event where it presents new iPhones, Apple Watches, and iPads. This year wasn’t an exclusion. But yesterday’s presentation didn’t result in Apple stock growth, and here’s why.
Asian equities surge
On Friday, Asian equities found a bit firmer footing, setting course for their first profits for two weeks, although the rout resumed in Shanghai where equities reached minimums last observed in 2014.
Eventually, investor sentiment turned out to be fragile because Wall Street's fear indicator surged to an eight-month maximum, indicating more downside risk, according to some market sources.
The greatest market shakeout since February has been reportedly provoked by a series of factors, such as fears over the impact of a China-US trade conflict, this week’s leap in American bond gains and also caution in the eve of earnings seasons.
Besides this, the MSCI index of Asia-Pacific stocks MIAPJ0000PUS managed to head north by 1.3% led by profits in Taiwan and South Korea. On Thursday, the MSCI index slumped by 3.6% reaching a 1-and-a-1/2 year minimum. It’s on track for a weekly 4% dive.
The Japanese N225 headed south by 0.5%. The Shanghai Composite sank by 1.8% reaching the lowest value since late 2014.
Meanwhile, in the United States the S&P 500 dived by 2% ending up with a three-month minimum, having lost 3.29% on Wednesday.
Besides this, the futures of the American index ESc1 bounced off 0.6% in Asia trade, in part backed by media report that the US Treasury Department won’t label China as a currency manipulator in its semiannual report to be released soon.
On Friday, Chinese trade figures disclosed that China's trade surplus with America reached a record maximum in September, thus providing a probable source of contention with American leader over trade policies as well as the currency.
Moreover, the data revealed firm expansion in China's exports and imports, dropping a hint at minor damage from the tit-for-tat levies with America.
This week, American and Chinese equities have appeared to be the top losers because investor fears about the trade conflict are increasing.
Richard Branson offloaded nearly 10 million shares, which equals about 4% of the Virgin Galactic stock, leaving him with an 18% stake.
Today at 00:00 GMT+3 SPCE will present the second quarter 2021 financial results. We will get to know everything about the company's financial condition and plans.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.