Bonds Selloff
The bond markets have had a sell off globally and this has led to some of the stock markets moving lower as investors increasingly grow jittery over the strength of the stock markets in the past few days. We have seen the global stock markets, especially the ones in the US, moving higher and setting all time highs at a frenetic pace over the last few months and as the indices kept moving higher and higher, the traders have been feeling the heat as they know that the correction and the move lower might come at any point of time. Over the last few days, the stock markets have become overheated and it looks as though the correction was around the corner and the sell off in the bond markets may have started that correction. Higher bond yields make borrowing more expensive and hence it was important for some correction to take place.
AAPL Prices Under Pressure
The US indices have also come under pressure as the American bellwether company Apple has come under scrutiny over its sales of its flagship and latest product iPhone X. With increasing competition from other brands like Samsung and many Chinese brands also flooding the market, there has been increased competition for Apple and its products and the sales seem to be flagging. We had the single biggest biggest in a month yesterday and even today, we are seeing it move lower on pre-market trading. Also, we have the quarterly revenues to be reported for AAPL later in the week and the traders have grown increasingly anxious over the last few days on how this would go through and this has resulted in the sell off so far. The sell off in the stock markets and the general risk off mode in the markets is not helping to settle down the frayed nerves as well. There are reports that the iPhone X had bad sales over the holiday season though there has been no specific confirmation of the same. The market tends to over react many times and this could turn out to be more of the same but we will know that only when the revenue reports come in.