IT stocks continue to fall
A mix of factors drove all major overseas markets lower overnight with a continuation of the tech sell-off mainly accounting for a 0.1% fall in the Dow, which closed at 21,359 points.
Negative sentiment towards IT stocks is better illustrated by the performance of the NASDAQ which came off nearly 0.5% to close at 6165 points.
In the UK, the FTSE 100 fell 0.7% or 55 points, its largest decline in nearly a month. The index closed at 7419 points. This was largely driven by negative sentiment surrounding lower than expected retail sales figures for May, as well as a strengthening in the Pound.
European markets tended to take their lead from the UK with the energy sector also sold down due to weakness in the oil price.
The DAX fell 0.9% to close at 12,691 points, while the Paris CAC 40 declined 0.5% to 5216 points.
On the commodities front, oil continued to tumble, falling another 1.1% to US$44.24 per barrel.
Gold was another big loser as it fell US$20 per ounce to close at US$1255 per ounce, representing a decline of 1.6%.
Iron ore bucked the trend, rallying 1.5% to close at US$55.23 per tonne.
Base metals were out of favour as nickel gave up most of the previous day’s rally to close at US$3.98 per pound.
Lead was the only base metal to make any material ground, closing at US$0.93 per pound.
Copper came off marginally to close at US$2.55 per pound.
Zinc was relatively flat at US$1.12 per pound.
After strengthening against the US dollar on the back of strong employment data yesterday, the Australian dollar retraced from circa US$0.76 to US$0.758.
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