“Tech Wreck” Goes Global Dragging Worldwide Markets Lower; Cable, USDJPY Slide

Monday, June 12, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Jun 12, 2017

First the bad news: following Friday’s “tech wreck” European equity markets have opened lower, with the Stoxx 600 sliding 0.9% and back under the 50DMA for the first time since December, dragged by selloff in tech shares, mirroring Asian markets as Friday’s “FAAMG” volatility in U.S. markets spreads globally, battering shares from South Korea to the Netherlands. European banks lag as the Spanish regulator stepped in to prevent another bank collapse, this time of LiberBank which we profiled yesterday, by banning short-selling in the regional commercial bank to mitigate Popular-related contagion.

Samsung Electronics, ASML Holding and Tencent Holdings led declines in Europe and Asia, dragging down benchmark indexes according to Bloomberg. U.S. stock futures, which ignored Friday’s tech move, also fell as markets continue to digest the Nasdaq 100’s plunge on Friday. Europe’s tech index fell as much as 2.8% to put it on track for its biggest one-day loss since October. The index had reached a 15-year high earlier this month and has soared around 40 percent over the last year.

As discussed over the weekend, the sudden slide in tech stocks, which was responsible for nearly half the YTD gains in the S&P helped send global equities to repeated record levels this year, blindsided many investors after markets largely brushed aside last week’s trio of risk events. The question now, according to BBG, is whether the drops represent merely a pause or a more fundamental crack in the U.S. stock bull market.

“There’s a chance U.S. internet technology stocks that have propelled a global stock rally will now serve as a buzz kill,” said Mitsuo Shimizu, deputy general manager at Japan Asia Securities in Tokyo.

The Rest…HERE

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