Stocks expected to lose ground in Europe – Financial Times

Monday 07:00 BST


European stocks are expected to fall after equities around Asia slip as investors as investors respond to a sharp drop in US tech stocks on Friday and the UK election result that delivered a hung parliament.

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Technology stocks in the US, including Alphabet, Apple, Facebook, Microsoft and Netflix, sold off on Friday. The S&P 500 technology sector dropped as much as 4.2 per cent, while the broader S&P 500 benchmark dropped 0.1 per cent and the Nasdaq Composite shed 1.8 per cent.

Tech stocks have been the big gainers in many global markets this year and while the reason for Friday’s tumble was not immediately clear, some strategists suggested investors were locking in gains after strong runs.

Many of Asia’s biggest tech names were under pressure on Monday. Chinese social media group Tencent was down 2.6 per cent in Hong Kong and among the worst performers in the benchmark Hang Seng index. AAC Technologies, an Apple supplier that was the subject of a recent short-seller attack, was down 4.3 per cent and the worst off in the Hang Seng.

In Japan, Alps Electric, also an Apple supplier, was down 3.5 per cent and SoftBank was down 3 per cent, putting them among the worst performers in the Nikkei 225. IT was the worst performing sector, down 1.3 per cent, in the benchmark Topix.

Netmarble, a newly listed mobile game maker, was down 5 per cent and among the worst performer’s in South Korea’s Kospi Composite, while internet operator Naver shed 5.7 per cent.

China’s technology-focused Shenzhen Composite was down 0.7 per cent.


According to opening calls from London Capital, the FTSE 100 will fall 35 points in opening trade, with Germany’s Xetra Dax 30 expected to lose 49 points.

Japan’s Topix was flat but declines for big names such as SoftBank and Uniqlo owner Fast Retailing pulled the Nikkei 225 down 0.6 per cent.

Hong Kong’s Hang Seng was off 1.2 per cent, while in Seoul the Kospi Composite was down 1 per cent.

China’s Shanghai Composite shed 0.5 per cent, while Singapore’s Straits Time eked out a 0.1 per cent gain. Markets in Australia were shut for a public holiday.


The British pound is finding support after Friday’s 1.6 per cent slide after the UK’s general election resulted in a hung parliament. It was the pound’s second-biggest one-day drop since October last year.

At the start of a new week, the pound is up 0.2 per cent at $1.2763.

Other major currencies were mostly making marginal gains against the US dollar on Monday. The dollar index, a measure of the US currency against a basket of global peers, was 0.1 per cent lower at 97.184 after three straight days of gains.

The Japanese yen was 0.1 per cent stronger at ¥110.28 per dollar after data showed wholesale inflation held steady in May and despite a surprise drop in machine orders, which are a popular proxy for capital expenditure.


Oil prices firmed. Brent crude, the international benchmark, up 0.6 per cent at $48.44 a barrel while West Texas Intermediate gained 0.6 per cent to $46.09.

Gold was up 0.1 per cent at $1,267.35 an ounce.

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