European and Asia markets managed to escape the hangover that US investors are now nursing after last night’s big tech sell-off on Wall Street.
The Nasdaq fell nearly 2.5% as investors dumped names like Apple and Amazon amid growing concerns about rising inflation expectations, the direction of interest rates and how that would put tech stock valuations into question.
Tech-heavy investment trust Scottish Mortgage has fallen by more than 12% in just over a week and was among the FTSE 100’s worst performers on Tuesday along with other tech names Ocado and Avast.
However, the FTSE 100 index managed to squeeze out small gains thanks to strength among names that should benefit from a reopening of the UK and global economy.
“The top three risers were Rolls-Royce, International Consolidated Airlines and Melrose, all of whom are connected to the aviation sector which finally has brighter prospects given the rapid Covid vaccine rollout and the UK’s roadmap to coming out of lockdown,” said AJ Bell investment director Russ Mould.
“The FTSE 100 rose 0.2% to 6,627 while the Paris CAC 40 index nudged up 0.1%. Germany’s DAX slipped 0.5% with tech and consumer non-cyclicals weighing on the index.”