Apple’s fears of virus impact shake markets

The London markets stumbled into the red as major global firms were shaken by Apple’s warning that coronavirus will press on the firm’s revenues.

The pound also strengthened, weighing down on the FTSE, after employment grew faster than forecast and the new chancellor held firm on next month’s UK Budget date.

The FTSE 100 closed 51.24 points lower at 7,382.01 at the end of trading on Tuesday.

Connor Campbell, financial analyst at Spreadex, said the session was driven by investors considering the potential impact of coronavirus, but losses were on the “more reasonable end of the spectrum”.

He said: “Instead of panicking, the European and US indices posted relatively mild declines.

“Potentially helping to drown out the alarm bells was President Xi Jinping’s argument that China can still hit its 6% growth target in 2020 – a bold, likely misleading claim that nevertheless may have acted to mitigate Tuesday’s losses.”

The European indices nonetheless dropped lower after a subdued session yesterday.

The German Dax decreased by 0.75% while the French Cac moved 0.48% lower.

Across the Atlantic, the Dow Jones also opened lower, as the market was initially shaken by Apple’s cautious update, but still remains in sight of its alltime highs.

The price of oil was also dented further by coronavirus fears as companies connected to China remain cautious.

The price of a barrel of Brent crude oil fell 0.68% to 57.17 US dollars. Meanwhile, strongerthan-expected UK employment figures helped the pound make modest gains.