Morning Briefing: Markets mostly higher despite tech decline

Markets mostly higher despite tech decline... Fed expected to increase rates this week...

Morning Briefing: Markets mostly higher despite tech decline
Steve Randall
Markets mostly higher despite tech decline

The tech sector fell again on Wall Street during Monday and there were mixed fortunes for the sector in early trade in Asian and European markets Tuesday.

The sector is under pressure as investors switch to other sectors which were seen as risky 6 months ago but are now performing better. The drop in value of Snap Inc. following the huge IPO is also a factor.

Asian markets closed mostly higher Tuesday although markets remain cautious ahead of meetings from the Fed, BoE and BoJ this week.

European markets are also trending higher, although politics remains in focus with Brexit talks and the fragile nature of the new UK government causing concern. Several UK data releases painted a mixed picture of the economy. Business confidence is higher in the Eurozone this month but down in Germany.

Wall Street and Toronto are expected to open higher.
 

 

Latest

1 month ago

1 year ago

 

North America (previous session)

US Dow Jones

21,235.67 (-0.17 per cent)

+1.62 per cent

+19.76 per cent

TSX Composite

15,383.80 (-0.58 per cent)

-0.99 per cent

+9.93 per cent

 

Europe (at 5.00am ET)

UK FTSE

7,525.93 (+0.19 per cent)

+1.22 per cent

+24.50 per cent

German DAX

12,758.68 (+0.54 per cent)

-0.09 per cent

+32.11 per cent

 

Asia (at close)

China CSI 300

3,582.27 (+0.22 per cent)

+5.82 per cent

+16.83 per cent

Japan Nikkei

19,898.75 (-0.05 per cent)

+0.07 per cent

+24.22 per cent

 

Other Data (at 5.00am ET)

Oil (Brent)

Oil (WTI)

Gold

Can. Dollar

48.52

(+0.48 per cent)

46.26

(+0.39 per cent)

1264.39

(-0.39 per cent)

U$0.7542

 

Aus. Dollar

U$0.7545



Fed expected to increase rates this week

The markets are expecting the Federal Reserve to increase interest rates when it meets this week.

The FOMC meeting is also expected to reveal more details of the Fed’s stated aim to reduce its balance sheet which stands at more than $4 billion and analysts are becoming impatient.

"If the Fed is serious about reducing the size of its balance sheet this year and wishes to communicate those plans well in advance, it is running out of time to do so," said Michael Pearce, an economist with Capital Economics told Reuters.

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