Apple said that iPhone sales fell short and declined to give a financial forecast amid the pandemic.
US stocks closed higher overnight as economic data pointed to the nation’s recovery that exceeded expectations. The US economy grew at a record 33.1% annualized rate in the third quarter, above the 32% economist estimate after contraction by 32.4% in the second quarter. Filings for unemployment benefits fell to an unadjusted 751,000 for the week that ended on Saturday versus 770,000 expected. As a result, the benchmark S&P 500 index rose 1.2% after a fall of 3.5% on Wednesday, the Dow Jones Industrial Average gained 0.5%, and the tech-heavy Nasdaq Composite climbed 1.6%.
Asian markets slipped on Friday amid jitters over the results of the U.S. presidential election and persistent fears over the global economic recovery from the coronavirus pandemic. In Australia, the data showed that the third quarter Producer Price Index grew 0.4% quarter on quarter, better than the previous month’s 1.2% contraction. The ASX 200 index was down 0.22% while China’s Shanghai Composite inched down 0.10%, Japan’s Nikkei 225 fell 0.64% and South Korea’s Kospi slid 1.10%.
In Europe, equities eased on Friday as COVID-19 worries remained in focus, just days away from the U.S. presidential election. Yesterday, the European Central Bank didn’t bring forward stimulus, despite fresh concerns over the region’s economies. Dow futures fell sharply as investors digested the disappointing quarterly results from Apple. The tech giant reported that iPhone sales fell short and declined to give a financial forecast amid the pandemic.
Meanwhile, EURUSD bounced slightly from the 100-DMA but struggled to overcome the 1.17 handle that now acts as the immediate resistance. The dollar remains steady after yesterday’s rise, with the euro finishing the week on a downbeat note and with solid losses. Of note, the common currency struggles to stage a more robust recovery despite German GDP data coming in higher than expected. Later in the day, the pair could be affected by fresh economic data out of the US.
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