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Tech sell-off spreads, politics lift euro

Monday, June 12, 2017 - 01:53

World stocks are suffering tech problems after the worst day for Apple shares in over a year, while the euro and the bloc's bonds rally after a bumper weekend for pro-EU and pro-business politics in France and Italy. Sonia Legg reports

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The hang over lasted the weekend - Apple's 4 per cent dunking on Friday hit tech stocks across Europe and Asia on Monday. Samsung fell 1.5 percent and Europe's tech index was down by twice that. It was on track for its biggest one-day loss since October, although it has risen by 40 percent in the last year. (SOUNDBITE) (German) HEAD OF CAPITAL ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "The Dax finally found a reason to yield a bit because overpriced U.S. technology shares have fallen. It's like a pressure cooker: every now and then a bit of air needs to escape to prevent an explosion." French parliamentary elections and, to a lesser extent, an Italian vote offered some respite for the euro and the region's bonds. Both rallied on politics seen as pro-EU and pro-business. (SOUNDBITE) (German) HEAD OF CAPITAL ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "Macron now can get everything through parliament, he can finally start reforms, see them through. He can also work on the German-French cooperation again. Europe works again." Not the whole of Europe though. Sadly for Britain three days after an election delivered a hung parliament sterling was under pressure again. (SOUNDBITE) (English) NICK PARSONS, GLOBAL HEAD FX STRATEGY, NAB, SAYING: "It may lead to a softer rather than a harder stance in the Brexit negotiations. But on the negative side we still can't say for sure which government would actually be delivering that potentially softer Brexit." The dollar wasn't faring much better. It eased back from a nine-day high at the end of last week after President Trump navigated testimony from the former FBI chief James Comey. This week it's the turn of the Attorney General Jeff Sessions. And then there's the not insignificant issue of rates - the central bank is expected to nudge them up another quarter point despite a recent dip in economic data.

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Tech sell-off spreads, politics lift euro

Monday, June 12, 2017 - 01:53