Wall Street indices pressured by Apple warnings
Apple’s warning that it will miss Q1 targets due to the CoVid-19 virus saw markets open under pressure, and they stayed there. Apple’s warning comes as other companies update about supply chain disruptions on the back of factory closures in China.
US30USD Daily Chart
The US30 index touched an eight-day low yesterday on broad-based weakness
The 55-day moving average has risen to at 28,737 while the 100-day moving average is at 28,061
US housing starts probably dropped 30.7% in January, according to the latest survey, while building permits likely fell 0.1% m/m. Fed’s Mester is due to speak later in the day.
The Germany30 index fell for the first time in three days yesterday as sentiment data disappointed, putting additional pressure on to the Wall Street mood
The index remains above the 55-day moving average at 13,361 while the 100-day average provides longer-term support below at 13,106
The February ZEW survey for Germany slumped to 8.7 compared with the 21.5 economists had expected. That’s the first worsening of the indicator in six months. There’s nothing major on the data front today apart from the Euro-zone’s current account and construction output data for December.
Gold posted the biggest one-day gain since January 3 yesterday amid corporate concerns about the impact the CoVid-19 outbreak would have on supply chains, and the effect on global growth
Gold hit a six-week high yesterday to test the January 8 high of 1,612. The 55-day moving average has moved up to 1,536.19
The global total of deaths from CoVid-19 topped the 2,000 mark yesterday, with still only 5 reported outside of China. The rate of increase in the number of cases slowed to the least since the methodology of reporting was changed on February 13.