After closing the first trading session of the year in the green, U.S. stock futures plunged overnight as Apple cut its quarterly revenue forecast for the first time since 2007. The unprecedented move in the Tim Cook era was prompted by a downturn in iPhone sales in China, which represents nearly 20% of Apple’s revenue. It was also the latest sign of broader economic malaise in the world’s second largest economy, fuelled by trade tensions with the U.S.
|Traders in Asia are still trying to piece together a “flash crash” that |
rippled across the region overnight, with the Australian dollar sinking 8% and Turkish lira tanking 10% against the Japanese yen. While some pointed to risk aversion triggered by Apple’s outlook cut, others said Japanese retail investors were bailing out of loss-making positions. Moves were exacerbated by thin liquidity and algorithmic trading.