Stocks Under Pressure After Tech Slump; Euro Gains: Markets Wrap

Stocks in Europe fell as markets reopened after the long weekend, resisting the intensity of the selloff seen in the U.S. on Monday but still under pressure amid the tech rout and simmering global trade tensions. The dollar slipped against most major peers, while Treasuries dropped.

The Stoxx Europe 600 Index headed for its first decline in four days in the wake of U.S. losses, though futures for the S&P 500 indicated selling pressures are easing. Equity benchmarks in Asia pared some of their earlier declines, but most ended in the red. European bonds followed Treasuries lower. The euro rose, and the New Zealand dollar and Norway’s krone had the biggest gains among G10 currencies versus the greenback.

After the worst three months for global stocks in more than two years, the second quarter has started on the back foot as trade tensions fester and technology shares get slammed. The risk-off mood comes as investors prepare for earnings season. They still anticipate a strong showing, but will be watchful for any more signs of a slowdown in the synchronized global expansion.

“What we are really seeing across the economies and markets are opposing forces playing out: in the economy you are seeing Fed versus inflation, in markets you are seeing momentum versus fundamental supports,” JPMorgan Asset Management Global Market Strategist Hannah Anderson told Bloomberg TV. “Investors need to be aware of these opposing forces along with a lot of the headline risk we are seeing come through when it comes to trade and regulation and how that’s going to impact their portfolios.”

Elsewhere, the Reserve Bank of Australia left interest rates unchanged at its monthly meeting. West Texas crude rebounded after its biggest loss in almost two months.

Courtesy : Bloomberg
Photo : The Balance

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