ASX takes a battering on day of volatility after Apple share price dive

Following a profit warning, Apple’s share price closed 9.96% down on Thursday, generating a wave of panic across global markets with several sectors of the Australian Stock Exchange (ASX) shaken by the news.

The benchmark ASX 200 finished 0.4% lower at 5,613, after correcting a steeper 1.1% fall earlier in the day, while the broader All Ordinaries index slipped by a similar level to 5,671 points, but also minimised its earlier tumble.

From a peak in late August, the ASX has receded by around 12%, as investors grow increasingly fearful of a global economic slump, resulting from an ongoing trade war and the US raising interest rates too quickly.

“Sentiment is as bad as I’ve seen it for a long, long time … the negativity is absolutely rife,” said Chris Weston, head of research at Australian foreign exchange broker Pepperstone.

“Ultimately, the market is concerned if we do see a resolution between those two nations [the US and China] … the damage has actually been done to the global economy and we’re hurtling towards a recession.”

“Equities is a confidence game, and if it goes down in China, Japan, Europe and the US, we are going down as well — there’s no doubt about that situation.”

Apple’s profit downgrade, ongoing US tariffs on steel and aluminium and weaker than expected manufacturing activity in the US, EU and China triggered the latest market meltdown, which sent the Australian dollar plummeting to a 10-year low of 67.3 US cents on Thursday.

Technology, consumer staples and industrials were amongst the weakest performing sectors on the ASX.