A 3% increase in yesterday’s trading and a further 1.6% in the pre-market shows APL 4.6% at the time of writing this morning sees it probably as a reaction to the signs that the Chinese economy is slowly recovering from the coronavirus.
Official data released yesterday suggests good news for the Chinese economy on three fronts, two of which are potential good news for Apple.
According to the National Bureau of Statistics, retail sales, industrial production and exports are all over. Growing consumer demand is good news for the demand for Apple products in China, while the increase in production means the company will be in a better position to keep up with the demand for new products, including the upcoming iPhone 12 model.
As China’s economic recovery accelerated last month, key indicators rose sharply as Beijing’s supportive measures aimed at boosting growth in the coronavirus epidemic began.
According to data released by the National Bureau of Statistics on Tuesday, retail sales of China’s main yardstick returned to growth for the first time in 2020, up 0.0% from a year earlier in August. The results were better than the 1.1% decline in July and the 0.1% increase expected by economists managed by the Wall Street Journal.
Industrial production rose 5.6% from a 4.6% increase in July, according to the Bureau of Statistics. Economists have achieved the expected 5.2% growth.
According to Reuters, trade tensions between China and the White House remain high, and Trump is likely to ramp up statements about China in an attempt to make a decision based on the election.
Meanwhile, US-China tensions are expected to escalate ahead of the US presidential election.
Right now, officials on both sides say they are optimistic.
Top U.S. and China trade officials reaffirmed their commitment to a first-tier trade deal by calling on a phone last month. “Both sides see progress and are determined to take the necessary steps to ensure the success of the agreement,” the Office of the U.S. Trade Representative said.
AAPL, however, usually has a downward trend as the stock is seen at the top the day after the split. It will be interesting to see how the market reacts to today’s Apple event.
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