The NASDAQ took a bit of a hit, due to a sell-off in a number of tech heavyweights including Apple, Alphabet (remember when Google rebranded?), Facebook and Microsoft.
This was on the back of the US dollar sliding slightly, despite news that the US Federal Reserve was likely to increase interest rates to 1.25 per cent.
What’s up with the tech companies?
The tech companies have been the driving force in the strength of the US dollar, but it’s believed that investors were starting to worry that this rise had to stop somewhere, and decided to take their profits and rotate them into different sectors, according to BMO Private Bank’s Chief Investment Officer Jack Ablin.
This is based on the upturn in energy shares, which had been performing poorly. It’s worth keeping in mind, though, that this tech drop could be a short-term dip.
GBP and inflation
Sterling regained a little ground today, but our traders are betting that its volatility is going to continue until there’s more concrete information about the DUP deal and Brexit negotiations.
The rise of inflation to 2.9% in May (which has surpassed the average wage increase of 2.1%) is also putting pressure on UK households. This could force the Bank of England to up interest rates to kerb this inflation rise. In short, watch this space.
We mentioned last week that crude had seen a bit of a dip, but that commodity has now stabilised, and is looking to be back on an upward trend.
It’s all about the Indices
One of the key performers of late has been Indices across the board – All of them have been on upward trends, and most are nearing their all-time highs.
But, as with all trades, the Indices are subject to news announcements as opposed to fundamentals. Our traders are keeping an eye out for any reports that could see a downward slide.
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