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Tech tumble as stimulus stalls

Tech tumble as stimulus stalls

Tech shares led US markets lower overnight after a series of downgrades and the launch of an antitrust lawsuit against Facebook. US lawmakers failed to deliver a fiscal stimulus bill, undoing previous promising developments. The present met the future in oil markets, where demand optimism held prices up despite a massive build in inventories.

In a mixed night’s trading the lack of US political action appeared to dominate. Differences over local government and small business support in the US stymied bipartisan agreement, and the much reduced package looks like shrinking further.

European shares were flattish, but US stocks fell after JP Morgan downgraded Tesla and the state of New York was joined by 48 other starts in suing Facebook. The NY Attorney General alleges the social media giant has crushed opposition, and honed in on its acquisition of Instagram and WhatsApp.

An overall risk of flavour failed to support bonds and gold, as both backed away from recent gains. Cryptocurrencies also came under pressure, while forex markets were generally steady.

Futures indicate negative starts for Asia Pacific markets. New Zealand credit card data released this morning indicates a steadier November after October’s big lift, adding to the sombre market tone. The European Central Bank is expected to keep cash rates at zero at its meeting tonight, but the accompanying commentary has the potential to move markets.

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