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Stocks Fight Back After Tech Drop; Dollar Edges Up

Stocks Fight Back After Tech Drop; Dollar Edges Up
(Dreamstime)

Wednesday, 28 March 2018 09:07 AM

U.S. stock futures turned positive and European shares erased most losses as markets began to steady following another bout of tech-induced drama. The dollar rose while Treasuries held steady as American growth data beat estimates.

Contracts for both the S&P 500 Index and Dow Jones Industrial Average pointed to a higher open, as traders sought to put Tuesday’s selloff of major tech names behind them. Nasdaq futures fluctuated. Gains for defensive sectors such as utilities and healthcare companies helped the Stoxx Europe 600 Index claw back ground as technology companies and miners weighed on the gauge. Earlier in Asia there were broad declines. Government bonds were mixed after gaining earlier, but there was enough caution remaining to keep Treasury yields below 2.8 percent.

The latest leg down for tech shares, which have been the driving force for much of the current bull market in global equities, came at a sensitive time. Stock markets trading with high valuations and tighter liquidity are already being shaken by protectionist moves by Donald Trump. His administration is mulling a crackdown on Chinese investments in technologies the U.S. considers sensitive, the latest step in his plan to punish China for violations of intellectual-property rights.

“The fate of equity markets right now, also the fate of the bull market right now, is heavily connected with tech,” Max Kettner, a Commerzbank AG cross-asset strategist, told Bloomberg TV’s Francine Lacqua.

Elsewhere, the yen weakened and gold fell as relations between North Korea and other countries appeared to ease. The British pound fluctuated as investors waited for signs of progress on the problem of the Irish border after Brexit. And West Texas oil extended declines a third day on signs a global crude glut may persist.

Here’s a list of some of the main events this week:

  • The big four euro-area economies are due to release March CPI readings this week.
  • The Treasury will probably auction about $294 billion of bills and notes this week, its largest slate of supply ever.

Terminal users can read more in our markets live blog.

And these are the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index decreased 0.1 percent as of 8:36 a.m. New York time.
  • The MSCI All-Country World Index sank 0.4 percent.
  • The U.K.’s FTSE 100 Index increased 0.1 percent to the highest in a week.
  • Germany’s DAX Index fell 0.3 percent.
  • Futures on the S&P 500 Index gained 0.3 percent.
  • The MSCI Emerging Market Index decreased 1.5 percent to the lowest in six weeks.

Currencies

  • The Bloomberg Dollar Spot Index rose 0.1 percent.
  • The euro dipped 0.1 percent to $1.239.
  • The British pound declined 0.1 percent to $1.4142.
  • The Japanese yen declined 0.8 percent to 106.21 per dollar on the biggest drop in about five months.
  • The South Korean Won decreased less than 0.05 percent to 1,070.74 per dollar.

Bonds

  • The yield on 10-year Treasuries dipped less than one basis point to 2.77 percent, the lowest in more than seven weeks.
  • Britain’s 10-year yield declined five basis points to 1.376 percent, the lowest in two months.
  • Germany’s 10-year yield dipped one basis point to 0.50 percent, reaching the lowest in 11 weeks on its fifth straight decline.

Commodities

  • West Texas Intermediate crude declined 0.9 percent to $64.69 a barrel.
  • Gold fell 0.8 percent to $1,334.43 an ounce, the biggest fall in more than four weeks.
  • Copper climbed 0.1 percent to $3.00 a pound.

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U.S. stock futures turned positive and European shares erased most losses as markets began to steady following another bout of tech-induced drama. The dollar rose while Treasuries held steady as American growth data beat estimates.Contracts for both the S&P 500 Index and...
stocks, technology, dollar, markets
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2018-07-28
Wednesday, 28 March 2018 09:07 AM
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