Apple new iPhone demand worries send ripples through global markets

LONDON — World stock markets fell on Tuesday as worries over softening demand for the iPhone prompted a sell-off by tech stocks around the world, while the arrest of car boss Carlos Ghosn pulled down Nissan and Renault.

The dollar sagged on concern about the US economy after home builder sentiment weakened and oil prices fell half a percent despite OPEC production cuts.

News around Apple, Inc. triggered the latest bout of stock market selling, after the Wall Street Journal reported Apple was cutting production for its new iphones.

The European tech sector sank 2.2%, hitting its lowest level since February 2017, following Asian tech stocks lower. Shares of companies supplying chips to Apple suffered.

The sell-off was compounded by an auto sector drop led by Nissan and Renault after Mr. Ghosn, chairman of both car makers, was arrested in Japan for alleged financial misconduct.

The broad European STOXX 600 index was down 0.5% to a four-week low, and futures trading suggested another tough session was likely in the US, with Nasdaq Futures down over 1%.

“Most of Europe had a red session yesterday and that has been compounded by the news on Apple and tech stocks overnight, The overall climate is risk-off,” said Investec economist Philip Shaw.

Italian government bond yields jumped to a one-month high on Tuesday and Italian banking stocks dropped to a twoyear low, hurt by risk aversion and concerns over the Italian budget.

Euro zone money markets no longer fully price in a 10-basispoint rate rise by the European Central Bank in 2019, indicating growing concern about the economic outlook in the region.

Earlier, MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.2%, with Samsung Electronics falling 2%. In Japan, Sony Corp shed 3.1%.

Japan’s Nikkei slipped 1.1%, with shares of Nissan Motor Co. tumbling more than 5% after Mr. Ghosn’s arrest and reports he would be fired from the board this week.

Global stock markets have suffered a shakeout in the past two months, pressured by worries of a peak in corporate earnings growth, rising borrowing costs, slowing global economic momentum and international trade tensions. Trillions of dollars were wiped off equities in a particularly torrid October. —