Tuesday 15:30 GMT
What you need to know
- Tech stocks sell-off reaches Europe but calms on Wall Street
- Nasdaq higher in early trade
- Sterling stays under pressure after failure to reach Brexit deal
- US service sector activity slows
- Oil prices claw back some of their recent losses
Leading quote
“The prospective headline cut to the US corporate tax rate from 35 per cent to 20 per cent is a positive but not as significant as it may look at first sight,” says Alastair George, chief investment strategist at Edison Investment Research.
“[It] appears insufficient in our view to push US equities significantly higher from current levels as the magnitude of the effect on both S&P earnings per share and overall economic growth is relatively modest compared to other factors. Furthermore, the prospective changes have been at least in part discounted by markets over the course of the year.”
Hot topic
Pressure on technology stocks has reached Europe, having been brought to bear on the sector in the US, where it is seen as less well placed to benefit from proposed tax cuts.
But New York’s tech-heavy Nasdaq is not facing further selling — it is up 0.6 per cent in early trade. The Dow Jones Industrial Average is down 0.1 per cent, while the S&P 500 is flat.
European investors are moving into cyclical stocks although tech stocks are underperforming in the region.
The Stoxx 600 is down 0.4 per cent, while the index tracking the banking sector is down 0.7 per cent, having failed to hold a modest intraday rally. Mining stocks are also taking a toll, tracking weaker metals prices, with US copper futures down 3.7 per cent. The Euro Stoxx mining index is 1.8 per cent weaker.
Consumer stocks are among Europe’s best gainers on hopes that the region’s economic recovery leaves them with room to rally. German supermarket chain Metro is up 3.3 per cent. Belgian peer Colruyt is up 1.7 per cent.
Asian technology stocks also fell after the trading pattern spread.
Hong Kong’s Hang Seng index shed 1 per cent, with information technology stocks hit.
Japan’s Topix index rose 0.2 per cent overall, helped by strength among financial stocks.
The Kospi Composite in South Korea edged up 0.3 per cent.
Sydney’s S&P/ASX 200 was 0.2 per cent lower.
Forex and fixed income
The pound is under sustained pressure, knocked by the failure of the UK government to agree the terms of a divorce deal with the EU, preventing Brexit talks from moving on to trade arrangements. Sterling is down a further 0.3 per cent at $1.3434, bouncing off deeper intraday lows. Against the euro, the pound is 0.1 per cent weaker.
That is helping the FTSE 100 outperform its neighbours, with the UK stock index barely changed.
The yield on the UK’s 2-year gilt is falling further under the Bank of England’s 0.50 per cent base rate, as investors move back into the debt. It is yielding 0.49 per cent, down 1.6 basis points.
The euro is down 0.2 per cent at $1.1834 as the US tax deal buoys the dollar. The index tracking the US currency is up 0.1 per cent at 93.31.
The yen is 0.2 per cent weaker against the dollar at ¥112.67 per dollar.
There was little impact from news that Institute for Supply Management’s non-manufacturing index fell to 57.4 last month from October’s 12-year high of 60.1.
The slowdown was sharper than analysts’ expectation of 59 but remains well above the 50 point line that separates expansion from contraction.
The yield on the 10-year US Treasury, which moves inversely to price, is up 1 basis point to 2.38 per cent, while that on the two-year note was 5bp higher at a fresh 10-year high of 1.83 per cent — keeping the gap between the two at a decade low.
That on 10-year German Bunds is 1bp lower at 0.33 per cent.
Commodities
Brent crude oil is up 0.4 per cent at $62.69 a barrel after falling 2 per cent overnight as the market turned its attention to US shale output following Opec’s agreement to extend production cuts.
West Texas Intermediate, the US marker, is 0.1 per cent higher at $57.52 a barrel.
Gold is down $10 at $1,265 an ounce.
For market updates and comment follow us on Twitter @FTMarkets
Read Again US tech sell-off eases as Nasdaq bounces higher : http://ift.tt/2AQWBOqBagikan Berita Ini
0 Response to "US tech sell-off eases as Nasdaq bounces higher"
Post a Comment