According to people familiar with the matter, Apple has informed to its suppliers that the demand for the iPhone 13 has slowed down. The company has already cut iPhone 13 production by 10 million units due to global semiconductor chip shortages, as well as coronavirus-related manufacturing issues in Asia. The news of weaker iPhone 13 demand has pushed the Apple stock downwards by 2.92% in early trading sessions.

MACROECONOMIC DATA ANALYSIS

A Bank of England (BoE) survey revealed that British companies are struggling to find and hire staff required, as well as expecting higher inflation in 2022. The survey which includes around 3,000 businesses unveiled that 85% of Britain-based firms are facing difficulties in recruiting new employees, and 58% of firms reported that it is much harder to find new employees.

The central bank of Denmark, which initiated a stress test, showed that Danish banks have enough capital to face an economic recession, with the central bank urging tighter mortgage lending rules, as some owners are allegedly vulnerable to falling house prices and increasing interest rates. According to the central bank’s Head of Financial Stability Peter Storgaard, “we saw how hard the individual homeowner, the financial sector and society as a whole can be hit by falling prices in the housing market”.

CURRENCIES

The U.S. dollar edges slightly lower amid increasing worries over the Omicron COVID-19 variant inserting an “unsized risk premium into global asset markets”, according to analysts at ING Group. Despite major U.S. indices trading on a positive note, the dollar index, compared to a basket of six other currencies, traded 0.13% lower to 95.903.

GOLD

Gold futures stumble in volatile trading sessions, driven by growing investor & trader concerns of the spread of the newly-discovered Omicron COVID-19 variant. Despite the U.S. dollar edging lower, which typically moves inversely to the safe haven, the bullion moves further away from the $1,800 mark, stumbling 0.84% to $1,767 per ounce.

OIL

Crude oil prices continue to trade downwardly as the latest Organization of Petroleum Exporting Countries and allies (OPEC+) meeting decided to release more oil in the market in January, sticking to its policy of boosting output by small increments. The drop in oil value can also be attributed to the Omicron variant unsettling global markets. Brent futures dropped 0.36% in value to $68.62 a barrel, and WTI futures declined 0.41% in value to price at $65.30 per barrel.

INDICES

USA: S&P500 +0.74%, Dow Jones Industrial Average +1.17%, Nasdaq Composite +0.02%

Europe: FTSE 100 -0.57%, DAX -1.30%, CAC 40 -1.17%

Asia: Nikkei 225 -0.65%, Hang Seng +0.55%, CSI 300 +0.25%, Nifty 50 +1.37%