(Adds U.S. markets close)
* Apple sales warning due to coronavirus rattles markets
* Euro near three-year low after bleak German ZEW survey
* Oil rebounds on Libya output concerns
* Gold climbs on risk-aversion bid
By Herbert Lash
NEW YORK, Feb 18 (Reuters) - Gold rose and global equity
markets slid on Tuesday after Apple Inc said it was
unlikely to meet its sales guidance because of the coronavirus
outbreak in China, a warning highlighting the epidemic's threat
to global growth and corporate profits.
China reported its fewest new coronavirus infections since
January and its lowest daily death toll in a week, but the World
Health Organization said data suggesting the epidemic had slowed
should be viewed with caution.
Chinese officials reported 1,886 new cases - the first time
the daily figure has fallen below 2,000 since Jan. 30. The
number of deaths, 98, fell below 100 for the first time since
Feb. 11.
Apple said on Monday that manufacturing facilities in China
that produce its iPhone and other electronics had begun to
reopen, but were ramping up slower than expected.
The disruption in China will result in fewer iPhones
available for sale around the world, making Apple one of the
largest Western firms to be hurt by the outbreak.
Gold climbed more than 1% to a two-week high as investors
sought safety in the wake of Apple's warning. The price of
Brent, the global crude benchmark, fell below $57 a barrel but
rebounded on reduced supply from oil-rich Libya.
Forecasters, including the International Energy Agency
(IEA), have cut 2020 oil demand estimates because of the virus.
Equity markets around the world fell, with MSCI's
all-country world index slipping 0.47%.
The pan-European STOXX 600 index lost 0.38% and
emerging market stocks lost 1.11%.
HSBC Holdings PLC's announcement that it would shed
$100 billion in assets, shrink its investment bank and revamp
its U.S. and European businesses in a drastic overhaul added to
concerns about the impact of the coronavirus.
The UK-based bank, whose huge Asian operations are
headquartered in Hong Kong, said the coronavirus epidemic had
significantly impacted staff and customers. HSBC shares fell
6.35%, leading the FTSE 100 index to close down 0.69%.
On Wall Street, the Dow Jones Industrial Average fell
165.89 points, or 0.56%, to 29,232.19. The S&P 500 slid
9.87 points, or 0.29%, to 3,370.29 and the Nasdaq Composite
rose 1.57 points, or 0.02%, to 9,732.74.
"We're seeing some renewed weakness in the stock markets
following the announcement by Apple," said Saxo Bank analyst Ole
Hansen. "It's having a global impact on supply chains and
shipments - this will have a negative impact on growth
expectations."
U.S. stocks pared losses late in the session and the Nasdaq
closed essentially flat on speculation the hit to global supply
chains by the coronavirus will be temporary.
"We view Apple's sales warning as more catch-up than canary
in the coal mine for both tech and regional markets," UBS said
in a research note.
Overnight in Asia, China's CSI300 blue-chip stocks index
lost 0.5% after gaining sharply on Monday, encouraged
by a central bank rate cut and government stimulus hopes.
Japan's Nikkei lost 1.40%.
The dollar rose to nearly a three-week high against the euro
after Germany's ZEW survey of economic sentiment showed slumping
investor confidence in Europe's largest economy.
The euro was down 0.39% to $1.0792, while the dollar
index rose 0.43%. The Japanese yen strengthened
0.01% versus the greenback at 109.88 per dollar.
The ZEW research institute said in its monthly survey that
investors' mood deteriorated far more than expected in February
on worries over the coronavirus' effect on world trade.
The survey boosted expectations the German economy will lose
more momentum in the first half as slumping exports keep
manufacturers mired in a recession.
Safe-haven German 10-year bond yields fell to
-0.43% at one point. Other 10-year bond yields in Europe
fell similarly.
U.S. Treasury yields also fell. The benchmark 10-year note
rose 8/32 in price, pushing its yield down to
1.5627%.
Oil prices slid over the expected impact of the coronavirus
on crude demand and a lack of further action by the Organization
of the Petroleum Exporting Countries and allies to support the
market.
Crude rebounded on the collapse of Libyan oil output since
Jan. 18 because of a blockade of ports and oilfields.
Brent crude rose 8 cents to settle at $56.93 a
barrel, while U.S. West Texas Intermediate crude settled
flat, or unchanged at $52.05 a barrel.
U.S. gold futures settled 1.1% higher at $1,603.60 an
ounce.
(Reporting by Herbert Lash; Editing by Dan Grebler, Sonya
Hepinstall and Richard Chang)