The iPhones manufacturer’s warning about a reduction in the outlook for the first quarter of this year was nothing unexpected, in fact last week I mentioned in this space of analysis that the Chinese industry of technology, semiconductors and other by-products for smartphones was at a low level of activity due to the absence of workers, such as Foxconn, Apple‘s main supplier that will now have only 40% to 50% of its capacity, or the entire semiconductor sector in the world’s second largest economy that works at 30% of its potential, so it was predictable that not only Apple would be exposed to this reality, but also it is inevitable that many other companies will to.
Just as there can be no surprise, the data released today about investor confidence in Germany, which plummeted to 8.7 from the predicted 21.5, after reaching 26.7 in January, leaving no room for doubt that the economic impacts of the coronavirus epidemic are now beginning to be. This visibility of the negative consequences of the public health crisis conditioned the sentiment on Wall Street yesterday, with the North American indexes losing some ground, but nothing extraordinary and the technological ones were able to escape from the red.
For this Wednesday and without the shadow of Apple’s pessimism, investors will have their eyes on the FED minutes.
Marco Silva is a Financial Market Specialist with 20 years of experience, with transactions in 12 different countries, involving numerous financial instruments, Specialist in Technical Analysis, Capital Manager, Investment Advisor, Financial Hedging Operations and Algorithm trading developer. Economic Commentator TV and RTP Information for the Financial Markets, Responsible for the Department of Economy / Markets of TVL.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.