Wall St and European shares lower as tech rally stalls
2024-03-06
Summary:
Asian stocks fell as major US tech firms dragged down markets after Wall Street's decline. Nasdaq led with a 1% drop, alongside other US indexes.
Tech heavyweights drove Asian stocks lower on Wednesday following a tumble on Wall Street. All three major US stock indexes fell 1% or more on the day, led by the Nasdaq Composite.
Benchmark 10-year Treasury yields fell to a one-month low after both the manufacturing and the services sector data for February fell short of expectations. That led to a waning risk appetite.
But it has proved impossible to call the peak in this euphoric US stock market, Goldman Sachs said at the end of last month. BofA also predicted that the rebound from a bottom tends to be relatively quick.
Europeans shares were mixed in the previous session. The DAX 40, the FTSE 100 and the CAC 40 all hit their fresh record highs earlier this year like their US peers as business activity is looking up in the region.
Beneath the surface they could be in crisis. Trading volumes are sinking, IPO are scarce and some of its biggest companies prefer the appeal of the US.
The French finance minister Bruno Le Maire last month suggested three or four countries should forge ahead in accelerating the capital markets union, by creating a savings product together and allowing joint oversight of their markets.
The STOXX 50 is still at a significant distance from its peak hit back in 2000. It may require deeper loss of the index to take the RSI value below overbought territory before forging ahead again.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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