Daily summary: Apple’s warning has an impact on stock markets amid coronavirus fears

• Stock markets down amid Apple’s warning 

• EUR/USD at 34-month low

• Gold breaks above $1,600.00

Tuesday brought us pessimistic mood on global stock markets. Following Apple's warning that it will not meet its current quarter revenue guidance, major US indices tend to fall today. Apple’s statement should be apparent for every analyst and investor around the world amid coronavirus threats and uncertainty. Yet, the message might be regarded as a catalyst in terms of a drop in the market. 

Lack of optimism was particularly visible in Asia as Nikkei fell 1.40% and HSCEI closed 1,39% lower. Although Shanghai Composite was up 0.05%, one cannot compare this minor gain with yesterday’s surge amid PBOC stimulus. European equities are trading lower (with very few exceptions) as it seems as if the pessimistic sentiment has spread all over the world today. 

As far as coronavirus update is concerned, China’s National Health Commission confirmed over 72 thousand cases in mainland China while the total death toll has reached 1,868. 

Today EUR/USD was under huge pressure. Following particularly weak data from Germany, the euro tumbled below 1.08 reaching its lowest level since April 2017. The published reading (The ZEW Indicator of Economic Sentiment for Germany) indicated a fall of 18 points from the previous month to 8.7 in February (est. 21.5). On top of that, NY Empire State Manufacturing Index surprisingly climbed to 12.9 in February (est. 5.00). The index measures general business conditions in New York state. In fact, the figures reached the highest level since May 2019. 

When it comes to other hard data news, one could notice some positive figures from the UK. The unemployment rate stood at 3.8% - the figures were in line with market expectations.

The disappointing data from the eurozone is yet another argument for the dominance of the US dollar this year. The euro managed to rebound in the afternoon and is currently trading above 1.08. 

Apart from that, gold prices soar in the afternoon, now trading above $1600. The yellow metal managed to break the key resistance level following a significant surge: in roughly one hour the gold spot price increased from $1588 to the mentioned $1600 level. The bulls are still pushing the price higher as gold is now trading at around $1603 (+1.41%)

Tomorrow will be a really busy day in terms of economic data. The crucial CPI figures will be published in the UK and Canada. One should also pay attention to PPI figures from the USA, New Zealand and the UK.

Gold prices soar in the afternoon, now trading above $1600. Source: xStation5