European Stocks Advance as Selloff in Technology Shares AbatesBy
European shares rose as a rout in technology shares halted after their worst slump in almost a year, and investors awaited tomorrow’s Federal Reserve policy decision.
The Stoxx Europe 600 Index added 0.6 percent at the close, with all 19 industry groups rising. The benchmark yesterday slid the most in nearly a month amid a sudden rout in global tech stocks spurred by concern the sector had rallied too far too soon.
- Stoxx 600 technology shares advanced 1.1 percent. Despite Tuesday’s slump, they remain the best-performing industry group this year.
- Traders are pricing in an almost 100 percent chance the U.S. central bank will raise rates at tomorrow’s meeting, Fed fund futures show.
- “The accompanying statement will be the major highlight: traders will focus on any details regarding the Fed’s balance sheet normalization plans and the timing of the next rate hike,” Ipek Ozkardeskaya, a market analyst at London Capital Group, wrote in a note. “The Fed could pause its rate-hike marathon until the end of the year, given that the Trump-reflation trend is waning and the new government’s massive spending plans and fiscal reforms appear to be delayed.”
- The U.K.’s FTSE 100 Index ended the session 0.2 percent lower after gaining as much as 0.4 percent earlier in the day. Theresa May bought herself a reprieve by apologizing to her own lawmakers for last week’s election debacle.