Volatility in technology stocks jumps
US stocks slumped on Thursday with losses in technology shares offsetting gains in financial sector as the selloff of tech stocks resumed. The dollar tumbled: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, ended 1% lower at 95.568. Dow lost 0.8% closing at 21287.03. The S&P 500 fell 0.9% settling at 2419.70. The NASDAQ index slumped 1.4% to 6144.35 after a 1.4% gain on Wednesday.
European stocks pressured by stronger euro
European stock indices fell sharply on Thursday as concerns about impending start of policy tightening weighed on market sentiment. The euro and British pound extended gains against the dollar. The Stoxx Europe 600 tumbled 1.3%. Germany’s DAX 30 fell 1.8% closing at 12416.19. France’s CAC 40 sank 1.9% while UK’s FTSE 100 ended 0.5% lower at 7350.32. Indices opened lower today.
Asian markets mixed
Asian stock indices are mostly down today as investor confidence was undermined by US Senate decision to delay the health care reform vote and technology stocks fell tracking Wall Street overnight. Nikkei fell 0.5% to 20130.41 despite a weaker yen against the dollar. Bank stocks posted gains though as Yellen’s comments supporting gradual rate hikes in US raised their earning prospects expectations. Chinese stocks are down: the Shanghai Composite Index is 0.5% lower and Hong Kong’s Hang Seng Index is down 0.6%. Australia’s ASX All Ordinaries index is up 0.8% despite stronger Australian dollar against the greenback.
Oil advances on US output decline
Oil futures prices are edging higher underpinned by a decline in US output. US crude output fell 100,000 barrels per day (bpd) to 9.25 million bpd last week, the steepest weekly fall since July 2016. Prices recovered yesterday from seven-month lows helped by a second weekly draw in US crude inventories. Brent for August settlement climbed 0.2% to end the session at $47.42 a barrel on the London-based ICE Futures Europe exchange on Thursday.