{"id":107293,"date":"2017-06-13T07:35:23","date_gmt":"2017-06-13T11:35:23","guid":{"rendered":"http:\/\/countingpips.com\/?p=107293"},"modified":"2017-06-13T07:08:40","modified_gmt":"2017-06-13T11:08:40","slug":"us-technology-stock-selloff-weighs-on-market-sentiment","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/06\/us-technology-stock-selloff-weighs-on-market-sentiment\/","title":{"rendered":"US technology stock selloff weighs on market sentiment"},"content":{"rendered":"
June 13, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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US stocks retreat as technology shares selloff continues<\/h2>\n<\/div>\n<\/div>\n

US stock indices <\/b>closed lower on Monday led by losses in technology stocks second session in a row. The dollar weakened: the live dollar index<\/a> data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, inched down 0.13% to 97.143. S&P 500 <\/em>edged down 0.1% settling at 2429.39 with six out of benchmark\u2019s 11 main sectors finishing in negative territory led by technology stocks, down 0.8%. The Dow Jones <\/a>industrial average lost 0.2% to 21235.67 with losses in Apple and McDonald\u2019s shares outweighing gains in General Electric and Chevron. The Nasdaq <\/em>composite index fell 0.5% closing at 6175.46 after a 1.8% drop on Friday.<\/p>\n

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The dollar slipped on Monday despite a continued rise in Treasury yields. Treasury yields have been rising in a three-day streak ahead of Federal Reserve\u2019s two-day meeting set to begin today. The Fed is expected to raise rates a quarter percentage points. In economic news May budget deficit rose to $88.4 billion from $52.5 billion in April. Today at 12:00 CET National Federation of Independent Businesses Small Business Index will be published in US, the outlook is positive for the dollar. And at 14:30 CET May Producer Price Index report will be released, the outlook is negative.<\/p>\n

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Technology stocks lead European equities lower<\/h2>\n<\/div>\n<\/div>\n

European stock indices <\/b>fell on Monday led by losses in technology stocks sparked by Wall Street\u2019s Friday selloff. The euro <\/em>ended little changed against the dollar while the British Pound <\/em>extended losses after the Conservative Party lost parliamentary majority in Thursday\u2019s snap election. The Stoxx Europe 600 index fell 1%. The DAX 30 <\/em>closed 1% lower at 12690.44. France\u2019s CAC 40 <\/em>lost 1.1% while UK\u2019s FTSE 100 <\/a>slipped 0.2% to 7511.87.<\/p>\n

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The Stoxx 600 Technology Index fell 3.6%. Brexit talks may be delayed as UK government led by Theresa May appeared in turmoil following Thursday\u2019s snap election. Negotiations over terms of UK\u2019s exit from the European Union were scheduled to start June 19. The Conservative Party lost parliamentary majority and no political party won the minimum 326 seats needed for that, resulting in so called hung parliament. Prime Minister May will meet Northern Ireland\u2019s Democratic Unionist Party leader Arlene Foster in London today seeking to secure the support of DUP\u2019s 10 lawmakers to make up for Conservative\u2019s nine-seat shortfall in the House of Commons. Today at 10:30 CET May inflation data will be released in UK, the outlook is negative for the British Pound. And at 11:00 CET ZEW Survey results for June will be published in Germany, the outlook is positive for euro.<\/p>\n<\/div>\n<\/div>\n

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Asian stocks recover<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b> are mostly higher today following a selloff in US technology shares. Nikkei <\/em>closed little changed ending 0.05% lower at 19898.75 today with yen weakening against the dollar ahead of Fed policy meeting set to start today where another interest rate hike is anticipated. The Chinese stocks are higher: the Shanghai Composite Index <\/em>is up 0. 5%, and Hong Kong\u2019s Hang Seng <\/em>Index is 0.4% higher. Australia\u2019s All Ordinaries Index is up 1.5% buoyed by bank shares despite stronger Australian dollar against the greenback.<\/p>\n

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Oil up on Saudi supply cut talk<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices <\/b>are rising today on reports Saudi Arabia, the world’s top oil exporter, will limit volumes of crude to some Asian buyers in July and deepen cuts in allocations to the United States. Saudi officials said they are making real cuts, including 300 thousand barrels per day to Asia for July, although several Asian refiners said they were still receiving their full allocations. However price gains remain limited by global inventory overhang. OPEC releases today its monthly oil report. Prices ended higher on Monday: August Brent crude gained 0.3% settling at $48.29 a barrel on London\u2019s ICE Futures exchange.<\/p>\n

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets US stocks retreat as technology shares selloff continues US stock indices closed lower on Monday led by losses in technology stocks second session in a row. The dollar weakened: the live dollar index data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-107293","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/107293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=107293"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/107293\/revisions"}],"predecessor-version":[{"id":107311,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/107293\/revisions\/107311"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=107293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=107293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=107293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}