Tech stock were once again responsible for any excitement on Wall Street. Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN) jumping 1.9% and 1.1% respectively boosted the NASDAQ to close at a record high at 7637. This is the second straight session where tech stocks have been under the spotlight and we are seeing a lot of positive news surrounding the sector, Microsoft (NASDAQ:MSFT) buying GitHub, Apple (NASDAQ:AAPL) pushing new software and Amazon sales flying, when everything else in the market is looking a little drab
Whilst the Nasdaq bounded higher for the second straight session. The broader US market was noticeably less buoyant as trade war concerns weighed on sentiment. The Dow closed 0.05% lower and the S&P 500 1 point higher. A rather disappointing end given strong ISM non-manufacturing figures and news that the US-North Korean Summit is reportedly back on for 12th June.
Higher start expected in Europe
With the exception of the shining tech sector lifting the Nasdaq, a broadly uninspiring end to trading overnight in Wall Street led to a mixed session in Asia. A slightly livelier looking start to trading in Europe is expected led by the FTSE MIB which is on track to claw back a chunk of the 1.1% sell off from Tuesday.
Italy still a cause for concern
While Italy is over the worst politically speaking, economically the picture is far from rosy. Italy’s new Prime Minister Giuseppe Conte vowing to put in place economic policies which could add to the nations heavy debt load sent investors into panic mode, searching for safe haven government debt, such as US treasuries, pulling yields lower.
The euro appears to have found an unexpected ally in Giuseppe Conte, who revealed that the new Italian government had no plans to leave the euro zone. This, in conjunction with reports that the ECB will have a live debate on QE exit at its June 14th meeting saw the euro continue to pick up from recent 10-month lows versus the dollar to hit a session high of $1.1732.
Loonie rallies on exemption optimism, Mex peso dives on retaliation news
While the Loonie popped higher on hopes of an exemption for Canada from the steel and aluminium tariffs, a retaliation from Mexico in a sharp escalation in the tit for tat trade war over tariffs and an increasingly elusive NAFTA agreement sent the peso to a 15 month low. Mexico responded to the US metal tariffs, with retaliatory tariffs on a wide range of US agricultural products including pork, cheese and apples. The moves are expected to ramp up trade tensions making any agreement on NAFTA unlikely before the Mexican election this summer.