Morning Wire TV: Daily Market Snapshot (video)
Following false breakouts in markets last week, downside momentum continued to build yesterday.
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In particular, the weakness was centred on the tech centric parts of the equity market, including the Nasdaq100 (-2.6 per cent) and the Philly SOX (-3.8 per cent) with sharp moves lower in certain tech stocks such as Tesla (-8.5 per cent) & Apple (-3.0 per cent). The key question, therefore, is whether a near term buying opportunity in tech is now emerging, OR whether those moves will mark the start of something more sinister.
The key event today is Jerome Powell’s semi-annual testimony on Capitol Hill (which will be repeated tomorrow). That may have some impact on markets, albeit it’s already well known that Powell supports a large fiscal stimulus package.
Later today we also get US consumer confidence for February (published by the Conference Board, at 3pm London time).