Tech companies push European markets higher
European stocks climbed and U.S. futures were steady as a dose of calm returned to markets on Thursday, though concerns surrounding global trade were not far away. The yield on 10-year Treasuries edged back above 3 percent, while the euro and pound gained.
The Stoxx Europe 600 Index managed to claw back a little ground following Wednesday’s selloff, even as carmakers took a hit after President Donald Trump ordered a probe into automobile imports to the world’s biggest economy. That news also dragged the MSCI Asia Pacific Index lower. Major American equity benchmarks were poised to open little changed.
The pan-European Stoxx 600 was up around 0.3 percent during mid-morning deals, with most sectors and major bourses in positive territory. Technology stocks were the top performers on Thursday, up over 1 percent as the sector tracked overnight gains on Wall Street. Siltronic, Temenos and Ericsson each rose more than 1.5 percent during mid-morning trade.
Europe’s autos stocks led the losses, down over 1.4 percent following news overnight that the U.S. government plans to launch a national security probe into auto imports. The surprise announcement appeared to exacerbate fears of fresh global charges. Porsche, Daimler and BMW were all more than 2.4 percent lower.
Japan’s Nikkei share average fell to more than two-week lows on Thursday as automakers slumped after the Trump administration launched a national security investigation into car and truck imports that could lead to new U.S. tariffs.
The Nikkei ended 1.1 percent lower at 22,437.01, the lowest closing since May 9. The Nikkei volatility index soared to 18.29, the highest level since mid-April. The transport equipment sector tumbled 3.0 percent and was the board’s worst performer after news of the U.S. probe.
The dollar weakened 0.5 percent to 109.54 yen in Asian trade while the broader Topix dropped 1.2 percent to 1,775.65.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.