(Adds U.S. market open, byline; changes dateline; previous
LONDON)
* Apple will miss quarterly revenue target due to
coronavirus
* Euro near three-year low after bleak German ZEW survey
* Oil skids, Brent trades below $57 a barrel
By Herbert Lash
NEW YORK, Feb 18 (Reuters) - Oil prices tumbled and global
equity markets slid on Tuesday after Apple Inc said it was
unlikely to meet its sales guidance because of the coronavirus
outbreak in China, a warning highlighting the epidemic's threat
to global growth and corporate profits.
China reported its fewest new coronavirus infections since
January and its lowest daily death toll in a week, but the World
Health Organization said data suggesting the epidemic had slowed
should be viewed with caution. Apple said on Monday that manufacturing facilities in China
that produce its iPhone and other electronics had begun to
reopen, but were ramping up more slowly than expected.
The disruption in China will result in fewer iPhones
available for sale around the world, making Apple one of the
largest Western firms to be hurt by the outbreak.
Gold climbed more than 1% to a two-week high as investors
sought safety in the wake of Apple's warning and the price of
Brent, the global crude benchmark, fell below $57 a barrel.
Forecasters, including the International Energy Agency
(IEA), have cut 2020 oil demand estimates because of the virus.
Equity markets around the world fell, with MSCI's
all-country world index .MIWD00000PUS slipping 0.72%.
The pan-European STOXX 600 index .STOXX lost 0.38% and
emerging market stocks lost 1.28%.
HSBC Holdings PLC's HSBA.L announcement that it would shed
$100 billion in assets, shrink its investment bank and revamp
its U.S. and European businesses in a drastic overhaul added to
concerns about the impact of the coronavirus. The UK-based bank, whose huge Asian operations are
headquartered in Hong Kong, said the coronavirus epidemic had
significantly impacted staff and customers. HSBC shares fell
6.35%, leading the FTSE 100 index .FTSE to close down 0.69%.
On Wall Street, the Dow Jones Industrial Average .DJI fell
252.29 points, or 0.86%, to 29,145.79, the S&P 500 .SPX lost
21.49 points, or 0.64%, to 3,358.67 and the Nasdaq Composite
.IXIC dropped 45.93 points, or 0.47%, to 9,685.25.
"We're seeing some renewed weakness in the stock markets
following the announcement by Apple," said Saxo Bank analyst Ole
Hansen. "It's having a global impact on supply chains and
shipments - this will have a negative impact on growth
expectations."
Overnight in Asia, China's CSI300 blue chip stocks index
.CSI300 lost 0.5% after gaining sharply on Monday, encouraged
by a central bank rate cut and government stimulus hopes.
.T .SS
Japan's Nikkei .N225 lost 1.40%.
The dollar rose to nearly a three-week high against the euro
after Germany's ZEW survey of economic sentiment showed slumping
investor confidence in Europe's largest economy. The euro EUR= was down 0.2% to $1.0812, while the dollar
index .DXY rose 0.3%. The Japanese yen JPY= strengthened
0.03% versus the greenback at 109.85 per dollar.
The ZEW research institute said in its monthly survey that
investors' mood deteriorated far more than expected in February
on worries the coronavirus would crimp world trade.
The survey added to expectations the German economy will
lose more momentum in the first half as slumping exports keep
manufacturers mired in a recession.
Safe-haven German 10-year bond DE10YT=RR yields fell to
-0.43% at one point. Other 10-year bond yields in Europe
NL10YT=RR FR10YT=RR fell similarly.
U.S. Treasury yields also fell. The benchmark 10-year note
US10YT=RR rose 12/32 in price, pushing its yield down to
1.5474%.
The slide in oil prices was pressured by concerns over the
impact on crude demand from the coronavirus outbreak in China
and a lack of further action by the Organization of the
Petroleum Exporting Countries and allies to support the market.
Brent crude LCOc1 fell 74 cents to $56.93 a barrel after
rallying in the previous five sessions. U.S. West Texas
Intermediate crude CLc1 fell 53 cents to $51.52 a barrel.
Spot gold XAU= added 1.4% to $1,602.25 an ounce.
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