Good morning. A tech selloff, a plan to revive tourism and booming commodity prices. Here’s what’s moving markets.
Technology stocks led a selloff on Tuesday, with megacaps falling and dragging down the wider market as cyclical sectors like industrials and financials went in the other direction. U.S. Treasury Secretary Janet Yellen ruffled the market with comments that most economists see as self-evident: that interest rates will likely have to rise as government spending ramps up and economic growth accelerates. She later clarified she was not forecasting rate rises. Still, her comments appeared to crystallize existing fears about rising prices in a market already showing some jitters about expensive stock valuations.
Tourism ministers from G-20 countries threw their weight behind vaccine passports as the way to revive the travel industry, with documents to show when a person has been fully vaccinated, has immunity or recently tested negative for Covid-19. The European Union is also looking toward tackling the longer virus fight by proposing the joint procurement of treatments, a way to secure supplies once the acute phase of the pandemic is passed. In the U.K., new labs will be built designed to speed up the development of vaccines to tackle new coronavirus variants.
The European Union is set to announce new rules on Wednesday that would prevent foreign state-funded companies from undercutting their rivals in the EU. Competition Commissioner Margrethe Vestager backed the plans, which don’t mention China but which follow complaints from European companies that the country’s firms get support they cannot match. Separately on tensions with China, G-7 nations are considering a U.S. proposal for countries to coordinate to counter what the White House sees as China’s economic coercion.
The burgeoning battle for supremacy in cryptocurrencies between leader Bitcoin and challenger Ether isn’t the only area where markets are testing highs. Commodity prices are booming. Oil prices have been boosted as reopening efforts globally underpin hopes for demand to return to normal levels and by U.S. crude stockpiles falling. Copper also rose back above $10,000 a ton. Elsewhere, corn futures topped $7 per bushel for the first time since 2013 amid supply concerns driven by a lack of rainfall in Brazil. And prices for cheese are surging too as restaurants open across the U.S. and customers indulge in cheeseburgers, mozzarella sticks and queso dip.
Stock-futures for Europe and the U.S. are both trending higher heading into Wednesday as markets recover some ground. European earnings get busier again, with numbers coming from car manufacturer Stellantis, insulin maker Novo Nordisk and shipping giant AP Moller-Maersk. On the economic data front, we’ll get services activity readings for…
Go to the news source: Stock Markets Today: Tech Selloff, Janet Yellen, Commodity Prices, Europe Travel