Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

GLOBAL MARKETS-FANGS and BATS sell-off spooks world stocks

Stock MarketsMay 11, 2021 17:20
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

* Stock markets tumble as tech stocks sell off
* Inflation angst lingers across assets
* Commodities take breather after rapid rise
* Global asset performance http://tmsnrt.rs/2yaDPgn
* World FX rates http://tmsnrt.rs/2egbfVh

(Adds European open)
By Marc Jones
LONDON, May 11 (Reuters) - Global stock markets were set for
a second day of sharp losses on Tuesday as the combination of
inflation worries and an anti-monopoly drive in China sent the
world's mightiest tech giants tumbling.
Europe had touched a record high on Monday but its restart
was a sea of red as London's FTSE .FTSE , Frankfurt's DAX
.GDAXI and the CAC 40 in Paris .FCHE all dropped roughly 2%.
.EU
Asia's main regional equity gauges .MIAPJ0000PUS had
suffered their biggest slide in nearly two months overnight,
with Japan's Nikkei .N225 and Hong Kong's Hang Seng .HSI
both closing down 3%. With talk of tighter regulation from Beijing, Chinese tech
heavyweights Baidu 9888.HK , Alibaba 9988.HK Tencent
0700.HK , collectively dubbed the BATs, all dropped more than
3%. Food delivery major Meituan 3690.HK tumbled as much as
9.8% too, leaving its value $30 billion lower in a week.
It had followed a 3.6% slump in the U.S. FANG+ index of
megacap tech firms .NYFANG on Monday. Electric car pioneer
Tesla TSLA.O had skidded 6.4% and Google GOOGL.O fell 2.5%.
.N
"The underlying driver is that there is still a rotation out
of duration (higher interest rate) sensitive parts of the market
and this is why tech stocks are coming under pressure now," said
Mizuho's Head of multi-asset strategy Peter Chatwell.
"Given the rise in the earnings power of these firms
different governments will also seek to raise more tax revenue
from them in the coming years."

INFLATION ANGST
The cost of raw materials from copper to wood to wheat have
been soaring over the last month, testing the views of top
central bankers that rises in inflation will be transitory as
economies emerge from COVID lockdowns.
U.S. breakeven rates, which factor in inflation, have scaled
multi-year peaks. Most euro zone bond yields edged back up on
Tuesday while a market gauge of long-term inflation expectations
EUIL5YF5Y=R was nearing its highest in over two years.
A host of Federal Reserve and European Central bank speakers
this week will be closely watched by markets to assess how
authorities are likely to respond.
A test case on U.S. inflation will come when the Labor
Department releases consumer price index report on Wednesday.
"Inflation's shadow looms large and we do think that there
is a limit to the Fed's tolerance of inflation," DBS Bank said
in a note.
In currency markets speculation that growing price pressure
would erode the dollar's value kept the U.S. currency near a
2-1/2-month low.
A consolidation in commodity markets after their surge on
Monday kept the Australian dollar AUD=D3 just below a
two-month high at $0.7827. The Canadian dollar CAD=D3
stabilised near a four-year high, while the New Zealand dollar
NZD=D3 perched comfortably at February highs.
Oil prices gave up earlier gains as concerns that rising
COVID-19 cases in Asia will dampen demand outweighed
expectations that a major U.S. fuel pipeline could restart
swiftly. U.S. crude CLc1 dipped 0.66% to $64.49 a barrel. Brent
crude LCOc1 fell to $67.84 per barrel.
Metal markets saw copper prices start to nudge higher again.
They were last at $10,470 a tonne having hit a record high
$10,747.50 the previous session. Iron ore SZZFc1 had settled
too after surging 7% on Monday.

GLOBAL MARKETS-FANGS and BATS sell-off spooks world stocks
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email