Stocks Drop After Latest U.S. Tech Rout; Yen Slips: Markets Wrap

• March 27 2018
• Samuel Potter, Adam Haigh

Stocks were on the back foot again across both Europe and Asia as the selloff in technology shares that rattled U.S. markets on Tuesday spread. Amid the risk-off mood Treasuries extended gains, but the yen slipped.

Stocks were on the back foot again across both Europe and Asia as the selloff in technology shares that rattled U.S. markets on Tuesday weighed on sentiment. Amid the risk-off mood Treasuries extended gains, but the yen slipped.

Equities retreated across most sectors, with technology companies and miners setting the pace. American tech shares yesterday suffered their worst drop since the February rout, as investors were spooked by bad news from companies including Nvidia Corp. and Facebook Inc. Government bonds in Europe followed Treasuries higher.

The latest leg down for tech shares, which have been the driving force for much of the current bull market in global equities, comes 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.

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

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

• The big four euro-area economies are due to release March CPI readings this week.
• U.S. personal income and spending data for February are due to be released on Thursday.
• 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 fell 0.9 percent as of 10:47 a.m. London time.
• The MSCI All-Country World Index dipped 0.5 percent.
• The U.K.’s FTSE 100 Index declined 0.7 percent.
• Germany’s DAX Index sank 1.2 percent.
• Futures on the S&P 500 Index decreased 0.2 percent.
• The MSCI Emerging Market Index decreased 1.6 percent to the lowest in six weeks.

Currencies

• The Bloomberg Dollar Spot Index gained 0.1 percent.
• The euro fell 0.1 percent to $1.2388.
• The British pound climbed less than 0.05 percent to $1.4161.
• The Japanese yen sank 0.3 percent to 105.68 per dollar, the weakest in a week.
• The South Korean Won dipped less than 0.05 percent to 1,070.74 per dollar.

Bonds

• The yield on 10-year Treasuries declined two basis points to 2.76 percent, the lowest in more than seven weeks.
• Britain’s 10-year yield declined five basis points to 1.373 percent, the lowest in two months.
• Germany’s 10-year yield decreased two basis points to 0.49 percent, reaching the lowest in 11 weeks on its fifth straight decline.

Commodities

• West Texas Intermediate crude declined 1.1 percent to $64.54 a barrel.
• Gold decreased 0.3 percent to $1,340.39 an ounce.
• Copper dipped 0.6 percent to $2.98 a pound.

— With assistance by Garfield Clinton Reynolds, and Adam Haigh