October 3, 2023

Tech wobbles not a problem for Europe

Despite some mixed tones from Wall Street yesterday and more tepid tones earlier, European indices are keeping slightly higher once again today. That sees the positive form to start the new year stretch further, for now at least.

  • Eurostoxx +0.1%
  • Germany DAX +0.6%
  • France CAC 40 +0.5%
  • UK FTSE +0.2%
  • Spain IBEX +0.1%

Of note, the CAC 40 index is up nearly 3% on the week already as it continues to post fresh record highs.

CAC40 W1 05-01

The tech wobbles aren’t really hurting European indices, whose composition leans more to value stocks. In a year where growth margins may moderate, Europe may see another stellar performance once again. But it is still early days and who knows what the next twist in the pandemic/inflation saga will be.

Looking elsewhere today, S&P 500 futures are down 0.1%, Nasdaq futures down 0.4%, while Dow futures are flat.

The subdued tones in tech stocks are largely isolated for now but if they do cut deeper, that could drag risk sentiment down and spoil the good mood in European equities as well. So, just be mindful of that.

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