Wall Street braces for slump after Apple downgrade shock – business live

European markets weaken as phonemaker sparks China growth fearsApple’s shock profit warning sends European shares slidingApple stocks tumble after company cuts forecasts for key quarter 1.58pm GMT More on the consensus-busting ADP number from Capital Economics.Andrew Hunter, Capital Economics’ senior US economist, said the data provide “further evidence that, for all the recent volatility in financial markets, the US economy remains in a healthy shape going into 2019.”The markets apparently now believe that the Fed won’t be raising rates at all this year. However, while we have long expected that an economic slowdown would eventually persuade officials to move to the side-lines later this year, we doubt that the Fed will be ready to abandon its rate hike plans when employment growth is still so strong and economic growth is still well above trend. 1.56pm GMT Here is something (maybe) for the US investor bulls:Payrolls company ADP has reported that the US private sector added 271,000 jobs in December – far above the 178,000 expected, according to the economists’ consensus. The figures suggest that tomorrow’s market-moving non-farm payrolls data could beat current expectations of 177,000.To describe this as startling would be something of an understatement. The biggest increase in the ADP measure of private employment since February last year came out of the blue. Continue reading…
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