© Reuters. HESITATION IN EUROPE AFTER THE MARKED DECLINE OF THE “TECHS”
by Marc Angrand
PARIS (Reuters) – The main european stock Exchanges are expected in scattered order on Thursday the sharp downturn in technology stocks on Wall Street the previous day having revived fears of a correction of the end of the year, while some see it as mainly a movement of sector rotation.
Futures contracts on the main european indices suggest an opening up of 0.07% for the CAC 40 in Paris but almost stable for the Dax in Frankfurt as for the EuroStoxx 50, while the FTSE 100 in London, still penalized by the strength of the pound, could fall to 0.25%.
The Tokyo stock Exchange, finished the day in green, the Nikkei advancing 0.57%, thanks to the support of banking stocks, but the MSCI index comprising the values of Asia and the Pacific excluding Japan declined 1.39%.
The stock Exchange of Seoul yielded a 1.45%, Hong Kong% To 1.45%, Taiwan 1,43%.
In China, the index SSE Composite has dropped to 0.61%, the CSI 300 of the main cap 1,16%, despite an unexpected increase in the PMI manufacturing index official.
Among the heavy weights of asian high technology sector, Samsung Electronics (KS:005930) lost 3.42 percent, the specialist taiwan semiconductor TSMC 3,62%, SoftBank 3.3% and Tencent of 2.43%.
On Wednesday, the american Nasdaq has closed with a decline of 1.27%, its largest percentage decline since mid-August, investors reducing their exposure to the “techs” to favour financial and industrial. This rotational movement of the Dow Jones such as the Standard & Poor’s 500 register the new records and finish up.
Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Alphabet and Facebook (NASDAQ:FB) have lost between 2% and 4%, Netflix (NASDAQ:NFLX) 5.54 to% and Intel (NASDAQ:INTC), 1,74%.
THE DOLLAR STABLE, THE STERLING STILL ON THE RISE
Speaking of”a movement of rotation of solid techs and semi-conductors to distribution, transport and financial” Wall Street, Credit Suisse cites among the possible explanations for the changes in MSCI indexes effective this Thursday, the adjustments of the end of the month and the fact that some of the funds get to close their fiscal year on 30 November.
At the same time, the bitcoin is gaining nearly 3% in Asia to 10.109 dollars after his hectic day to Wednesday, during which he jumped to 11.395, before falling back to 9.250 dollars.
On the currency market, the dollar is stable in the face to a basket of reference currencies, with traders remaining concerned about the signs of deadlock on the front lines of the tax reform in the United States, which have overshadowed Wednesday’s upward revision of gross domestic product (GDP) in the u.s. in the third quarter.
The euro is trading around 1,1870 dollar and is heading towards a rise of 1.9% for the whole month of November.
The pound sterling continues to appreciate against the greenback, as the european single currency, always worn by the evocation of an agreement between London and Brussels on the financial cost of Brexit.
The markets continue to monitor the information related to North Korea, 36 hours after the firing test of a missile with intercontinental by Pyongyang. At the Un on Wednesday evening, the us ambassador said that the north Korean regime would be “completely destroyed” in the event of war.
The oil market is slightly higher but the caution could limit the price variations of a barrel pending the outcome of the Vienna meeting between producer countries, in view of a possible extension of the agreement management of the global supply, in force since January.
The discussions behind closed doors between representatives of the Opec should begin at 11: 00 GMT before opening to the ministers of non-Opec 14: 00 GMT. A press conference is scheduled at the end of the day.
In the meantime, the session will be hosted by, among others, the first estimate of euro zone inflation in November (10h00 GMT) and by the figures of the income and expenditures of u.s. households (13: 30 GMT).
(With Henning Gloystein in Singapore, edited by Juliette Rouillon)