Tech shares in US rebound as metals fall with euro

Bloomberg

US technology shares rebounded on speculation the recent selloff went too far, while the dollar rose and industrial metals dropped.
The Nasdaq Composite Index climbed as chipmakers and software companies paced gains. The S&P 500 was little changed as investors weighed the latest developments in efforts to overhaul taxes in the world’s largest economy, including the surprise inclusion of the alternative minimum rate for businesses in the Senate measure. The Stoxx Europe 600 slipped after a slump in industrial metals hit mining shares. The euro fell even as indicators showed economic momentum accelerated to its fastest pace in over six years.
In the US, House and Senate lawmakers are poised to begin working on compromise tax-overhaul legislation—a key step in their drive to send a bill with tax cuts for corporations and individuals to President Donald Trump by the end of the year.
A global stock rally that has led indexes to record highs had stalled this month as investors locked in profits in tech stocks, the year’s best performers, and switched to firms seen benefiting most from a potential reduction in the corporate tax rate such as banks. That changed on Tuesday.
“Tech is reversing a bit on both an absolute and relative basis as some of the rotation out of the sector and into banks, industrials, and other sectors we’ve seen over the past week gets walked back,” said George Pearkes, a macro strategist at Bespoke Investment Group.
Sterling fell as Brexit negotiators wrestled with the Irish border question and retail sales and services data disappointed. Most European government bonds rose, with Greek bonds outperforming after progress on the country’s bailout.
Elsewhere, oil hovered below $58 a barrel before US government data forecast to show crude stockpiles decreased for a third week. The US trade deficit widened in October to a nine-month high on record imports that reflect steady domestic demand.
The European Commission College of Commissioners will discuss Brexit on Wednesday and will likely make its recommendation on whether sufficient progress has been made to move negotiations onto the future relationship.
The S&P 500 Index rose 0.3 percent as of 11:12 am in New York. The Stoxx Europe 600 Index decreased 0.1 percent. Japan’s Nikkei 225 Stock Average decreased 0.4 percent. The MSCI Emerging Market Index sank 0.3 percent.
The Bloomberg Dollar Spot Index increased 0.2 percent. The euro declined 0.3 percent to $1.1825. The British pound decreased 0.3 percent to $1.3441. The Japanese yen fell 0.4 percent to 112.85 per dollar.
The yield on 10-year Treasuries rose one basis point to 2.38 percent. Germany’s 10-year yield declined two basis points to 0.32 percent. Britain’s 10-year yield fell two basis points to 1.26 percent.
West Texas Intermediate slipped 0.3 percent to $57.35 a barrel. Gold dipped 0.9 percent to $1,266.40 an ounce, the weakest in four months. The Bloomberg Base Metals Spot Price Commodity Index dropped 1.6 percent to a two-month low.