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.
This article is General Information and contains only some information about some elements of one or more financial products. It may contain; (1) broker projections and price targets that are only estimates and may not be met, (2) historical data in terms of earnings performance and/or share trading patterns that should not be used as the basis for an investment as they may or may not be replicated. Those considering engaging with any financial product mentioned in this article should always seek independent financial advice from a licensed financial advisor before making any financial decisions.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.