As Traders Prepare for Hot CPI, Tech Selloff Intensifies – Europe Market Wrap
Global equities came under pressure as technology shares extended their retreat ahead of a key US inflation report expected to show the highest reading in more than three years.
Nasdaq 100 futures fell 1.2% following another volatile session for semiconductor stocks, while S&P 500 futures declined 0.8%. Europe’s Stoxx 600 slipped 0.4%, with tech and basic resources leading losses as investors rotated toward more economically sensitive sectors.
Oil held firm despite another round of retaliatory attacks between the US and Iran. Tehran said it would reassess diplomatic negotiations following the strikes, highlighting the fragility of ongoing talks. Brent crude traded near $91.50/bbl as geopolitical risks remained elevated.
Treasuries edged lower after Tuesday’s rally, pushing the US 10-year yield modestly higher. The Dollar was little changed as traders awaited the inflation data for further clues on the path of Fed policy.
Elsewhere, BoJ’s Governor Kazuo Ueda was hospitalized and is expected to miss next week’s policy meeting. Investors continue to price in the need for additional BoJ rate hikes as policymakers attempt to combat inflation and support the Yen.
