Apple Revoked its Plan to Ramp Up Worldwide Production of iPhones 14

The International Monetary Fund delivered a stinging rebuke of the UK’s new unfunded tax cuts by calling them “excessive and in need of revision”, refueling criticism of a controversial plan which has pushed the British pound (GBPUSD) to a record low. The IMF advised Chancellor of the Exchequer Kwasi Kwarteng to use a plan scheduled for release in November to “consider ways to provide support that is more targeted and re-evaluate the tax measures, especially those that benefit high-income earners.” The Chancellor will meet investment banks later in the day to discuss the government’s economic boost plans, which wreaked havoc in financial markets.

The negative sentiment stems from the hawkish remarks of the U.S. Federal Reserve the day before that revealed aggressive monetary policy will continue until the country's inflation sees signs of a decline, leading to significant losses on Wall Street. The continuing global bond rout pushed the 10-year U.S. Treasury yield to above 4% as the dollar further strengthened.

Corporatewise, Apple (AAPL) shares fell as much as 3.6% in premarket after a report said it is revoking its plans to ramp up production of its new iPhones this year after an anticipated surge in demand was downward revised. Instead, it'll aim to produce roughly the same level as the prior year and in line with its original forecast this summer. China, the world’s biggest smartphone market, experiences an economic slowdown that’s hit its domestic gadget makers and naturally impaired iPhone sales. Global demand has also been suppressed by surging inflation, recession fears and disruption from the escalating geopolitical tensions and energy crisis in Europe. Elsewhere, Volkswagen (VOW.DE) is scheduled to price the IPO of its luxury sports-car unit Porsche.

Meanwhile, major European stock indices extended losses into the session on Wednesday as economic uncertainties pushed the equities deeper into negative territory. The European Central Bank hinted at accelerating increases in its interest rates to curb the soaring inflation in the region, noting that soaring energy is the main driver of the seemingly unstoppable drama. The German DAX plunged by 1.45% at the time of writing, while the French CAC 40 and British FTSE 100 slumped by 1.36% and 0.83% respectively. The euro dropped by 0.42% against the greenback, to go for $0.95616 at 1:55 p.m. CET. The beleaguered pound sterling plummeted by 0.58% against the greenback, selling to $1.05726. Expected macro data include Swedish, Danish and Irish retail sales, as well as consumer confidence indices from Germany, France, Sweden and Italy.

Asian markets traded lower earlier this morning. Japan’s Nikkei 225 fell 1.5%, Hong Kong’s Hang Seng Index dropped 3.4% and China’s Shanghai Composite Index declined by 1.6%. Australia’s S&P/ASX 200 fell 0.5%, while India’s S&P BSE Sensex fell 0.4%. The Japan’s index of coincident economic indicators edged higher to 100.6 in July against a revised 99.2 in June, while the index of leading economic indicators fell to 98.9 in July from 100.3 in the previous month. Retail sales in Australia creeped up by 0.6% from a month ago to a fresh record level of AUD 34.88 billion in August.