Tech Sell-Off Sends Global Equities Lower
- Technology stocks march lower after tax cut deal
- Brexit deal hurdle sends Sterling lower
- Oil edges lower as supply cut momentum fades
Technology stocks dwindled as the sector will be relatively unchanged by the tax cuts. The industry already enjoys low taxes, so Wall Street investors shifted their bullish bets into financials.
The tech-heavy Nasdaq 100 has given up 0.1% of its gains. Both European and Asian tech stocks are falling. Hong Kong’s Hang Seng is 0.7% lower, driven by a whopping 2% decline in tech stocks and a 0.4% drop in financials.
The tech sell-off sent the S&P 500 down overnight. The index has reclaimed some of those losses, up 0.15% this morning.
Sterling sentiment was knocked by the failure of the British government to agree on a divorce deal with the European Union.
The pound suffered its worst slide in over a month as Brexit talks are struggling to progress. Sterling slipped 0.45% lower against the dollar and 0.3% weaker against the euro.
Theresa May failed to finalise a deal on Monday as the Democratic Unionist Party protested a ‘’special deal’’ for Northern Ireland.
The dollar bulls have come out of hibernation, as the US Senate passes the highly-anticipated tax bill. The greenback has added 0.1% against a basket of its peers. As a result, euro bears drove the single currency 0.1% lower.
After Australian data showed strong retail sales for October, the Aussie dollar gained 0.6%.
Brent oil is 0.32% weaker, while Crude oil, the US benchmark, is 0.48% lower. Momentum from OPEC-led production curbs fade, pushing oil prices down. Investors are now focused on the potential for floods of US shale supply as the price of oil increases.
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