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Stocks under pressure as Apple sounds warning on coronavirus

Video credit: Reuters Studio
Published on February 18, 2020 - Duration: 01:23s

Stocks under pressure as Apple sounds warning on coronavirus

Global shares fell on Tuesday after Apple said it would miss its March quarter revenue guidance as the coronavirus slowed production and weakened demand in China.

Ciara Lee reports

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Stocks under pressure as Apple sounds warning on coronavirus

A warning from the most valuable U.S. company sent shockwaves across global markets on Tuesday (February 18).

Apple said it would miss its March quarter revenue guidance as the coronavirus slowed production and demand in China.

MSCI's broadest index of Asia-Pacific shares outside Japan fell a percent, while Tokyo's Nikkei slid 1.4%, dragged down by tech stocks.

China's blue chip shares gave up 0.5% after a strong rally on Monday (February 17), fuelled by hopes Beijing would introduce more policy stimulus.

Apple said factories in China were re-opening but ramping up more slowly than expected.

The news sent shivers through tech stocks, reinforcing signs of a broader hit to businesses from the epidemic.

Samsung Electronics and Taiwan Semiconductor Manufacturing both lost nearly 3%, with Sony also losing ground.

European shares then took a hit after the iPhone maker's warning.

The pan-European STOXX 600 index fell 0.8% in early trade.

Apple's Frankfurt-listed shares dropped more than 6%, while European companies which supply components to Apple also saw big losses.

As China's authorities try to prevent the spread of the disease, the economy is paying a heavy price.

Some cities remain in lockdown, and travel bans and quarantine orders are preventing many from working.

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