Saturday 26 May 2018

Tech stocks hammered by 'correction'

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

Reuters

Technology stocks fell heavily across Europe and Asia on Monday and were set to fall again on Wall Street after the worst day for Apple shares in more than a year, while easing political tensions lifted the euro and European bonds.

The tech-heavy Nasdaq was seen opening down 0.8pc after an almost 2pc drop on Friday, its third-biggest one-day loss of the year. A near 4pc slump in Apple on Friday, along with falls in Alphabet, Facebook and others took a heavy toll on rivals including Samsung and Europe's big chipmakers STMicro and Dialog on Monday. "It is pretty healthy to have some form of correction in the tech sector to distribute the flows into other sectors," said ABN AMRO chief investment officer Didier Duret.

The pan-European STOXX 600 was down 0.8pc, supported by modest gains in oil prices, which lifted shares in energy stocks, and by first-round French parliamentary election results which look set to give President Emmanuel Macron a huge majority to push through pro-business reforms.

Italy also offered some support after the eurosceptic 5-Star Movement failed to make the run-off vote in almost all the main cities up for grabs in local elections.

The euro rose back to $1.1220 in the currency markets, where anticipation is building ahead of Wednesday's conclusion of a two-day US Federal Reserve meeting.

Sterling was also in focus again as it slipped back below $1.27 and 88.30 pence per euro as UK Prime Minister Theresa May attempted to prop up her position after last week's damaging election.

At home, the Iseq was weaker and among the names trading lower yesterday Dalata was down 2.34pc in later trading, CRH fell 1.73pc and Paddy Power Betfair was down almost 2pc.

Irish Independent

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