Apple 4:1 Stock Split

MARKETS

The US dollar slumped after US GDP data made it clear the United States is faring much worse than other economies during the pandemic. GBP/USD rallied over 1.31 and USD/JPY fell through 105. EUR/USD jumped up to 1.19 despite disappointing data from Germany with Eurozone GDP expected today.

European stock markets tumbled on Thursday after the double blow of easily the worst US GDP decline on record and Germany’s economy contracting over 10% and by more than was expected. 

Despite some solid China manufacturing PMIs, Asian markets are also in the red on Friday. Wall Street dropped after the GDP data. However good results from Apple and other US tech giants after the close is offering some relief and Nasdaq futures are pointed higher. 

Gold pulled back in a profit-taking move alongside stock markets on Thursday but is sitting just below record highs again early Friday. WTI finished off its lows after one of its biggest daily drops in three weeks.
 

GURU WISDOM

“I have been trading for decades and I am still standing. I have seen a lot of traders come and go. They have a system or a program that works in some specific environments and fails in others. In contrast, my strategy is dynamic and ever-evolving. I constantly learn and change.” – Thomas Busby
 

GDP Crash

German GDP contracted 10.1% quarter-over-quarter and US GDP crashed -32.9% year-over-year, which was slightly better than the median forecast of 34.1%. Adding to the economic disappointment, US President Donald Trump created a bout of uncertainty by calling into question the date of the US election, suggesting it should be delayed until after the pandemic.
 

US Tech

US tech giants – Apple, Amazon, Google-parent Alphabet and Facebook reported quarterly earnings that topped high expectations. The strong showing validates the outperformance of the shares during the coronavirus pandmemic. 

Apple reported a stunning 11% increase in sales despite a lot of the US economy being shutdown. The shares are set to open over $400 on Friday- Apple also announced a 4:1 stock split, meaning every investor will receive four new shares worth around $100 for every every one they own currently.