Stocks mostly dip amid tech wobbles, ahead of central banks
SINGAPORE (AP) — World stock markets mostly fell Monday after technology stocks took a hit last week and as investors monitor policy announcements of major central banks this week.
KEEPING SCORE: Britain’s FTSE 100 was flat at 7,704 while Germany’s DAX fell 0.2 percent to 12,833. France’s CAC 40 shed 0.2 percent as well, to 5,498. Wall Street was set for a subdued open, with Dow futures up 0.1 percent and S&P 500 futures down 0.1 percent.
ASIA’S DAY: Japan’s Nikkei 225 index dropped 0.7 percent to 22,544.84 and South Korea’s Kospi edged 0.1 percent lower to 2,293.51. The Shanghai Composite index slipped 0.2 percent to 2,869.05 and Hong Kong’s Hang Seng index lost 0.3 percent to 28,733.13.
CENTRAL BANKS: Investors will keep an eye on monetary policy meetings by three top central banks: in the U.S., Japan and U.K. The Bank of England is expected to nudge up its key interest rate by a quarter point on Thursday as inflation remains high, and despite uncertainty around Brexit. Attention will also be on the outlook that the U.S. Federal Reserve and Bank of Japan give amid global trade tensions that can raise prices and weaken growth.
U.S. ECONOMIC GROWTH: The U.S. economy accelerated in last quarter at an annual rate of 4.1 percent, its best showing since 2014, official data showed Friday. Consumers spent tax-cut money, businesses stepped up investment and exporters rushed to ship their goods ahead of retaliatory tariffs. While President Donald Trump said it wasn’t “a one-time shot,” most economists say the pace of growth in the April-June quarter won’t last. Friday also marked the end of the busiest stretch of the second-quarter earnings season, with roughly a third of companies in the S&P 500 reporting results. Most companies delivered better-than-expected results and favorable outlooks. That has reinforced the underlying perception in the financial markets that the U.S. economy is performing strongly and that the Federal Reserve will raise interest rates again in coming months.
TECH STOCK LOSSES: Investors will also keep an eye on tech stocks after sharp losses last wekk. On Friday, Twitter said its monthly users declined in the second quarter, causing its stocks to plummet 20.5 percent. It was the company’s second-biggest loss since going public in 2013. Snap, the company behind the Snapchat messaging app, slid 4 percent. Facebook shares gave up 0.8 percent a day after the social media giant led a slide in technology stocks that snapped the S&P 500′s three-day winning streak. Amazon.com bucked the trend, adding just 0.5 percent, after it reported its biggest profit ever.
ENERGY: Benchmark U.S. crude rose $1.46 to $70.15 per barrel in electronic trading on the New York Mercantile Exchange. It lost 92 cents on Friday. Brent crude, used to price international oils, rose 61 cents to $74.90.
CURRENCIES: The dollar rose to 111.07 yen from 111.00 yen on Friday. The euro gained to $1.1680 from $1.1656.