Technology stocks rallied on Monday at the start of a big week of earnings for the sector globally, while bond yields hit multi-year highs as investors braced for major central banks to step back from ultra-easy monetary policies.
European shares were mixed in early trading, with the pan-European Stoxx 600 index broadly flat.
was in focus after Swiss chipmaker AMS, a key supplier for U.S. giant
Apple, reported a doubling of its 2017 revenues and raised its earnings
guidance far in excess of expectations.
“Technology stocks have
been at the forefront of equity market gains, and this week is pivotal
for keeping the momentum going,” said Rebecca O’Keeffe, head of
investment at Interactive Investor.
MSCI’s global information technology sector index was 1.4 percent higher at an all-time high.
Industry heavyweights Apple, Alphabet, Facebook, Microsoft and Amazon are all set to report earnings this week.
and European bond yields both reached milestones as investors prepare
for central banks to tighten monetary policy, and after a European
Central Bank policymaker said the ECB should spell out it would end its
bond purchases this year.
Dutch central bank chief Klaas Knot said
on Sunday the ECB should make clear that it will end its asset
purchases after the current bond buying program ends in September,
adding: “There is no reason whatsoever to continue the program.”
costs for Germany, the euro zone’s biggest economy, rose, with the
five-year bond yield briefly turning positive for the first time in more
than three years to reach a high of 0.004 percent. It was last trading
at minus 0.01 percent.
U.S. Treasury yields also rose, continuing a move to multi-year highs after strong growth figures posted on Friday.
Knot comments are a factor behind the sell-off in bonds today,” said DZ
Bank rates strategist Andy Cossor. “There’s also the sell-off in U.S.
Helped by rising bond yields, the dollar edged higher
against a basket of currencies, rising a quarter of a percent to 89.30
after scoring six consecutive weeks of losses.
from top U.S. officials last week did little to discourage bearish
positions, with net short dollar bets increasing to their highest level
since October, according to latest positioning data.
Despite Monday’s rise the dollar is set to post its biggest monthly decline since March 2016.
currency’s decline has been a boon for many commodities, with gold
making a 17-month top last week and last trading at $1,346 an ounce.
prices dipped on Monday but remained just off their highest level in
three years.Brent crude futures were holding atop $70 at $70.28 a
barrel. U.S. crude futures were up 23 cents at $66.23.