Coronavirus threatens to take chunk out of Apple

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 Budget date.

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

The European indices nonetheless dropped lower after a subdued session yesterday. The German Dax decreased by 0.75 per cent while the

French Cac moved

0.48% lower.

The Dow Jones also opened lower, as the market was initially shaken by Apple’s update, but still remains in sight of its all-time 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.

Meanwhile, stronger-thanexpected UK employment figures helped the pound make modest gains.

The number of people in work increased by 180,000 to 32.93 million in the three months to December, a record high, the Office for National Statistics said.

The pound thus increased 0.09% versus the US dollar at 1.301 and rose 0.28% against the euro at 1.203.

In company news, HSBC shares dived on news the global bank plans to axe 35,000 roles across its business. The bank’s finance chief Ewen Stevenson said there will be “meaningful” cuts in the UK. Shares in the company slid 38.8p to 551.9p in response yesterday.

Glencore was another major faller, closing lower after it swung to a net loss of $404 million (£311m).

The mining firm also said it has one eye firmly on coronavirus, which has already pushed down prices of some commodities. Shares closed down 10.55p at 226.1p at the end of trading.

BHP also dipped lower, despite announcing it will pay out its second highest ever dividend to shareholders.

Shares in the firm fell 24p to 1,667.6p at the close.

Holiday Inn owner Intercontinental Hotels Group moved higher after it posted an increase in annual profits, despite suffering as a result of protests in Hong Kong. Shares increased by 99.5p to 4,929p.

The biggest FTSE 100 risers were NMC Health, up 44.2p at 844.2p, Vodafone, up 4.18p at 155.3p, United Utilities, up 26p at 1,036.5p, and Intercontinental Hotels, up 99.5p at 4,929p. The biggest fallers were HSBC, down 38.8p at 551.9p, Glencore, down 10.55p at 226.1p, Auto Trader, down 25.8p at 577p, and Antofagasta, down 28.6p at 848.6p.