Tech names drag European stocks lower after brutal Wall Street session


Tech stocks took the brunt of the losses in European stocks on Friday, catching up with a tough day on Wall Street. But US equity futures rose slowly as bond yields declined.

The Stoxx Europe 600 SXXP index,
-0.86%
it fell 0.5% to 409.55, bringing the weekly loss to just over 1%. The German DAX DAX,
-0.63%
fell 0.2%, the French CAC 40 PX1,
-0.80%
fell 0.5% and the FTSE 100 UKX,
-1.07%
submerged 0.2%. The euro EURUSD,
-0.67%
and GBPUSD,
-0.78%
fell at the expense of a stronger US dollar DXY,
+ 0.64%.

However, the losses were contained as the global bond selling frenzy subsided. A raise for the 10-year US government bond TMUBMUSD10Y,
1,477%
Above a year-long high of 1.5% on Thursday sent stocks plummeting, but since then that performance has slipped back to 1.45%. The yield of the German 10-year bond TMBMKDE-10Y,
-0.247%
it hovered around the year’s highs at 0.274%.

“The fear about rising interest rates is that they are likely to slow the economic recovery,” said Naeem Aslam, AvaTrade’s chief market analyst.

Isabel Schnabel, a member of the executive board of the European Central Bank, said on Friday that the central bank would need to monitor long-term real rates.

“An increase in long-term real rates in the early stages of the recovery, even if it reflects better growth prospects, may withdraw vital political support too soon and abruptly given the still fragile state of the economy,” he told a conference. virtual. . “Politics will have to increase its level of support.”

US stock futures ES00,
-0.11%

YM00,
-0.31%

COMP,
-3.52%
rose shortly after the worst session since January 29 for the Dow Industrials DJIA,
-1.75%
and a 3.5% drop for the Nasdaq Composite COMP,
-3.52%,
its worst loss in a day since September.

European tech stocks were catching up with Wall Street sales, which also spread to Asia. Aslam said investors had been moving out of the tech sector toward those more oriented towards an economic recovery, although Thursday’s sell-off was smooth.

In the chip sector, the shares of the Dutch group ASML Holding ASML,
-5.92%

ASML,
-2.04%
and STMicroelectronics STM,
-5.42%

STM,
-1.82%
they fell about 1% each. ASM International ASM,
-1.93%
shares fell 2%.

Shares of major oil companies BP BP,
-2.97%

BP,
+ 1.15%
and total TOT,
+ 0.31%

FP,
-2.34%
were down 1.7% and nearly 1%, respectively, following a decline in CL00 crude futures,
-1.12%

BRN00,
-1.09%
prices.

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Airlines were in the spotlight, with shares from International Conslidated Airlines Group IAG,
+ 4.03%
increasing 4%. The operator of British Airways, Iberia and other airlines posted a net loss of € 6.92 billion ($ 8.43 billion) for 2020, and said it will not provide guidance for 2021 due to COVID-19 pandemic uncertainty. .

Bernstein analysts Daniel Roeska and Alex Irving said IAG reported slightly better-than-expected adjusted earnings before interest and taxes, and appears to have sufficient liquidity for the summer and that the cash burn is “low enough.” As Deutsche Lufthansa LHA shares increased,
+ 2.32%
and easyJet EZJ,
+ 2.47%,
and the holiday tour operator TUI TUI,
+ 0.02%.

But Norwegian Air Shuttle NAS shares,
-3.24%
it fell 3%, after the airline said losses rose in the fourth quarter amid increased impairments. The company said it would publish a detailed plan to support its future next week.

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