European stocks gain as Technology rout fades

Tech rout fades as European stocks gain; oil rises copy

Bloomberg

Technology companies led a bounce in European stocks as a global selloff that started in the sector last week showed signs of abating. The pound managed to advance as Theresa May survived a showdown with rank-and-file lawmakers and sought to prop up her minority government.
Almost every industry group in the Stoxx Europe 100 Index traded in the green, with technology shares poised for the largest gain in three weeks. Sterling headed for the first increase since the UK election that’s left Prime Minister May battling to shore up her position. She’ll meet Northern Ireland’s Democratic Unionists, seeking votes she needs to be able to pass any legislation. Treasuries were fractionally higher as this week’s Federal Reserve policy decision looms into view.
Should the rebound in tech shares carry through into US trading investors will likely breath a sigh of relief; the sector has been a key driver of global equity gains and a prolonged selloff would have represented a major threat to the ongoing bull market.
Samsung Electronics Co. was little changed after leading declines in Asia during Monday’s rout. Tencent Holdings Ltd., which tumbled 2.5 percent in the previous session, and Taiwan Semiconductor Manufacturing Co., which dropped the most since December, both advanced. In Europe, ASML Holding NV rose 1 percent after sliding 3.9 percent in the previous session.
They may get more drama from Washington on Tuesday, as Attorney General Jeff Sessions will testify publicly before the Senate Intelligence Committee. He will likely face pressure to explain his role in the firing of James Comey and contacts that he and associates of President Donald Trump had with Russian officials. Fed policy makers are forecast to raise their benchmark interest rate for the second time this year on Wednesday. Since that’s widely expected, the more market-sensitive elements of the meeting will relate to signals on future policy — either the path for rates or plans to cut the $4.5 trillion balance sheet. Central banks in Japan, Switzerland and Britain are also scheduled to weigh in with policy decisions this week.
Australian equities rallied 1.7 percent, the most since November, as bank stocks jumped after investors returned from a holiday. South Korea’s Kospi added 0.7 percent, with Samsung Electronics Co. little changed after leading declines in Asia during Monday’s rout. Hong Kong’s Hang Seng rose 0.6 percent as Tencent Holdings Ltd., which tumbled 2.5 percent in the previous session, rebounded 0.7 percent.
The Stoxx Europe 600 Index climbed 0.6 percent as of 9:49 a.m. in London, after dropping 1 percent on Monday. Tech shares rose 1.3 percent. Futures on the S&P 500 Index rose 0.2 percent. The Nasdaq 100 fell 0.6 percent on Monday, adding to its 2.4 percent rout on Friday. Apple fell 2.4 percent while Microsoft Corp. slid 0.8 percent.

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