Shares tumble as Apple cuts revenue forecast: ASX set to open lower

Market Reports

by Rachael Jones

Australian shares are poised to open lower as US stocks sank in part because Apple released a revenue warning causing concerns that global economic growth is slowing. Weaker iPhone sales in China saw Apple cut its revenue forecast for the first time in nearly 12 years. Technology shares went on to lead a selloff across the global market. The US manufacturing sector showed weakness – adding to the fears of a slow down. Treasuries rallied and the yen strengthened.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 2.8 per cent to close at 22,686, the S&P 500 lost 2.5 per cent to close at 2,448 and the NASDAQ lost 3 per cent to close at 6464.

European markets closed lower: London’s FTSE lost 0.6 per cent, Paris lost 1.7 per cent and Frankfurt lost 1.6 per cent.

Asian markets closed lower: Hong Kong’s Hang Seng lost 0.3 per cent, and China’s Shanghai Composite lost 0.04 per cent.

Taking all of this into equation, the ASX futures are eyeing a fall of 36 points. Yesterday the Australian share market closed 1.4 per cent higher or 76 points higher at 5,633.

Company news

REVA Medical, Inc. (ASX:RVA) has announced the promotion of Leigh Elkolli to the position of Chief Financial Officer and Corporate Secretary, effective from today. She will replace Brandi Roberts. Ms. Elkolli joined REVA in August 2017 as Senior Director of Finance and Corporate Controller. REVA Medical is a medical device company focused on the development and commercialization of bioresorbable polymer technologies for vascular applications. Shares in REVA Medical, Inc. (ASX:RVA) closed 2.9 per cent lower at $0.17 yesterday.

Ex-dividends

One company is going ex-dividend today. Concentrated Leaders Fund (ASX:CLF)  is paying 1.25 cents fully franked.

Currencies

One Australian Dollar at 9:00AM was buying 70.07 US cents, 55.53 Pence Sterling, 75.45 Yen and 61.54 Euro cents.

Commodities

Iron Ore Futures are pointing to a 1.8 per cent rise.
Gold has gained $12.10 to US$1296 an ounce.
Silver has gained $0.15 to US$15.79 an ounce.
Oil has gained $0.29 to US$46.83 a barrel.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.