After Apple warned that the coronavirus outbreak might affect its revenue forecasts, European stocks experience problems on Tuesday. The fears concerning the potential economic impact are continuing to affect the markets.
The German DAX index fell 80.49 points or 0.58% to 13704.45. Meanwhile, the United Kingdom’s FTSE 100 index declined 52.03 points or 0.70% to 7381.22. Moreover, the CAC 40 index of France dropped 12.44 points or 0.20% to 6073.51. By early afternoon the Stoxx 600 of pan-European declined 0.4%.
Tech giant Apple announced on Monday that it would not be able to meet its second-quarter revenue forecast. Weakened Chinese demand, as well as the problems connected with global iPhone supplies, will have a dramatic impact on the company.
As of Monday, a total of 72, 436 people are infected, according to China’s National Health Commission.
The tech giant Apple’s problems affected the suppliers. Thus, it resulted in shares in Japan as well as South Korea and Hong Kong to fell by more than 1.3%. Moreover, United States stocks also retreated from record highs.
The stocks were influenced by several other factors as well. For instance, HSBC, Europe’s largest bank, reported that it missed earnings expectations to record a 32.9% fall in pre-tax profit. Full-year-tax profit was $13.35 billion, according to the bank.
Apple and Others
Over the next three years, the bank also plans to reduce the number of employees by 35,000. Moreover, At the bottom of the Stoxx 600, HSBC’s London-listed shared fell.
French rail company Alstom agreed with Bombardier. According to that agreement, Alstom will buy the rail division of Bombardier. Alstom’s shares declined with 4.7%.
Intesa Sanpaolo is the Italian Bank. On Monday, Intesa Sanpaolo launched a 4.86-billion-euro takeover bid for rival Ubi Banca. Thus, that move helped to boost the shares of Ubi Banca as well as Intesa Sanpaolo. Intesa shares rose almost 2%, while Ubi Banca added 23%.
Due to Apple’s warning, European companies suffered. By more than 4%, Shares of Dialog Semiconductor fell. Moreover, ASMI shares also fell by more than 4%.
All in all, the ongoing coronavirus outbreak created many questions about the future of the economy of China. Moreover, as factories of many international companies are in China, the virus outbreak could undermine the global economy.
Apple is one of the giant technological companies. Thus, it affects the global economy very much. Investors and economists hope that it will handle the situation successfully.