Apple lost almost $200bn in market valuation in just two days on the news that China would ban iPhone usage in government offices and state-backed companies. We discuss what will be the real impact of the ban for Apple, and whether the market reaction was exaggerated. Of course, when a tech giant like Apple, with a market cap of nearly $2.8 trillion sneezes, the whole market catches a cold. The S&P500 fell for the third day to 4451 yesterday, while Nasdaq 100 slipped below its 50-DMA. Zooming out, the US small caps were also under pressure yesterday, the Russell 2000 fell below its 100-DMA and came close to the 200-DMA, as the latest data showed that the US jobless claims fell to the lowest levels since February, defying the latest softness in jobs data. The selloff in the Japanese yen slowed against the US dollar despite a slower than expected GDP print in Japan in the Q2, while the EURUSD sees more hesitation into the 1.07 mark, and into next week’s European Central Bank (ECB) meeting. The base case is a no rate hike, and yesterday’s morose growth figures came to cement the no change expectation. But German inflation due this morning could slow the doves. Listen to find out more!

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