WORLDWIDE : HEADLINES
Tech rout roils Asian shares, oil futures extend slump
TOKYO/NEW YORK – Asian shares fell on Wednesday and oil prices hit lows not seen since June after a rout of technology shares sank Wall Street for a third consecutive day and a major drugmaker delayed testing of a coronavirus vaccine.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slid 1.12%. Australian stocks dropped 2.24%, while shares in China .CSI300 fell 1.16%.
Japan’s Nikkei .N225 skidded by 1.69%.
U.S. S&P 500 E-mini stock futures ESc1 fell 0.01%, but Nasdaq futures NQc1 rose 0.72%.
Sentiment for equities and other risky assets also took a hit after AstraZeneca Plc (AZN.L) paused a late-stage trial of one of the leading COVID-19 vaccine candidates due to an unexplained illness in a study participant.
Full coverage: REUTERS
U.S. options investors pull back on tech bets, but SoftBank’s trade looms large
NEW YORK – As a tech-fueled sell-off hits Wall Street, investors are looking to options markets – including the positioning of Japan’s SoftBank Group Corp – to determine how much more volatility may be in store.
For now, few investors appear eager to buy the dip, which has sent the tech-heavy Nasdaq down 10% from its highs and rocked major U.S. stock indexes for three straight sessions.
Their recent caution is partially reflected in a measure called skew, which gauges demand for protective put options in relation to call options, used to bet on upside.
Amazon.com Inc’s 30-day skew, for instance, jumped to its highest level since July, according to data from Trade Alert. Skew for other tech-related companies, including Salesforce.com Inc, Adobe Inc and Facebook Inc, also rose sharply.
Full coverage: REUTERS
WORLDWIDE: FINANCE / ECONOMY / STOCK MARKET
Asian markets set to come under pressure after another down day on Wall Street
NEW YORK – Asian stocks were set to come under pressure on Wednesday after Wall Street sank for the third consecutive day led by declines in heavyweight technology companies, and oil prices hit lows not seen since June.
“The performance of Wall Street is going to leave a heavy residue, and most noteworthy is how the tech names dropped down quite aggressively. Investors will take a close note of that,” said Tom Piotrowski, a markets analyst at Australian broker CommSec.
“The dramatic fall in oil prices in the last day is being seen as a proxy for global growth expectations. That 7.6% fall will certainly be resonating.”
Escalating concerns over Britain leaving the European Union without a trade agreement added to the downdraft facing Asian markets.
MSCI’s gauge of stocks across the globe .MIWD00000PUS shed 2.03% following declines in Europe.
Full coverage: REUTERS
Stocks end lower as tech swoon persists, Tesla in historic drop
NEW YORK – U.S. stocks closed lower for a third straight session on Tuesday as heavyweight technology names extended their sell-off to send the Nasdaq into correction territory, while Tesla suffered its biggest daily percentage drop after the stock was passed over for inclusion in the S&P 500.
Each of the 11 major S&P sectors were lower, led by declines in technology and energy. Reports on Friday that SoftBank made significant option purchases during the run-up in U.S. stocks added to investor nervousness.
Technology once again dragged indexes lower with a drop of 4.59%, the third straight decline and worst three-day performance for the sector since mid-March. Even with the recent drop, the sector remains the best performer on the year.
Full coverage: REUTERS
Dollar and yen rise as tech selloff sends investors to safety
SINGAPORE – The dollar held its gains on Wednesday, as a stockmarket slide spilled over into selling of riskier currencies and an oil slump weighed on commodity currencies, while fresh Brexit turmoil pushed the pound to a six-week low.
The greenback sat by a one-month high against a basket of rivals =USD and edged up against the pound, euro and the kiwi.
In early trade the safe-haven Japanese yen JPY=EBS rose to a one-week peak of 105.83 per dollar as investors looked to jittery equity markets to set the tone.
“U.S. equity futures will likely be a guide to currencies today,” said Commonwealth Bank of Australia’s head of international economics, Joe Capurso.
“The more equity futures fall, the larger the strength in the dollar and the yen,” he said, with a European Central Bank meeting on Thursday a possible driver of even more dollar gains.
Full coverage: REUTERS
