Apple shock sends investors to safe havens and ‘flash-crash’ jolts currencies
European shares fall as Wall Street opens lower, with US jobs data soothing some worries; the currency ‘flash crash’ sends the yen soaring
London — Apple’s warning on revenue rocked financial markets on Thursday, as investors shunned equities and sought safety in bonds and less risky assets amid renewed concerns about slowing global economic growth and damage from the China-US trade war. Tech stocks led a sell-off across Asian, European and US shares after Apple cut its revenue forecast, its first downgrade in nearly 12 years, blaming weaker iPhone sales in China. The news also jolted currency markets and German government bond yields held close to their lowest in more than two years. “For the moment, investors have reacted by going into non-risky assets,” said Philippe Waechter, chief economist at Ostrum Asset Management, in Paris. “No one wants to take any risk because none of the uncertainties we are facing have been lifted, whether it’s Brexit, this trade war, or growth. Investors are putting their heads in the sand and waiting.” Apple’s US and Frankfurt-listed shares tumbled almost 10%. The alert renewed worries a...
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