It’s been a big night. Here’s what you missed:
– Whether you trade stocks, bonds or currencies, there is plenty to talk about after a big night of trade. Twitter tanked, losing 18% taking the rest of the tech sector and the overall market down. US 10’s rallied toward the low of the year which ignited selling in the US dollar and put a rocket under the Aussie, euro and pound.
– Looking first at Twitter, the fall was a result of the end to the lock-up of stock after the first six months of trade. Yelp also fell heavily and a general weakness in the tech-heavy Nasdaq ensued and it closed down 1.38% at 4,081. Elsewhere the Dow fell 0.78% to 16,401 while the S&P 500 dropped 17 points or 0.88% to 1,868.
– The result of course is a weaker night’s trade on the ASX futures market, with the June SPI 200 contract falling 25 points to 5,445.
– In Europe, Ukraine tensions and the US sell-off weighed, dragging shares down across the board, except in Spain which has been very quiet for the last few trading days. At the close, the FTSE fell 0.34% to 6,799, the DAX dropped 0.65% and the CAC lost 0.78% to 4,428. In Milan, the FTSE MIB fell 0.55%.
– On Currency markets, it was a night of absolute carnage for any US dollar bulls left out there as the fall in US interest rates threatens to knock the US dollar even lower. BK Asset management’s Cathy Lein wrote this morning that “The slide in Treasury yields drove the trade weighted dollar index to its lowest level in 6 months…Investors have been selling dollars aggressively over the past month despite better than expected economic data.” Indeed, that’s the conundrum and it will be costing a lot of traders a lot of money.
– Anyway, this morning the Aussie dollar is sharply higher at 0.9350, euro sits atop 1.39 at 1.3927, USDJPY is well under 102 at 101.60 and USDGBP – the pound – traded at its highest level since 2009 and sits at 1.6973 this morning.
– On Commodity markets, there wasn’t much action in either Gold or Oil which sit at $1,308.40 and $99.88 respectively. Copper is unchanged at $3.07 lb while Corn and Wheat ripped higher once again up 1.94% and 1.46% respectively. Soybeans fell 0.54%.
On the data front, the retail sales data is due out at 11.30am after the AiG Performance of Construction index at 9.30am. In China, we will see the releases of the HSBC Services PMI with a similar index for Hong Kong before we head to Germany this evening for factory orders. Key to the US will be a speech by Fed chair Janet Yellen.
Here is CMC Markets Stock to Watch from Chief Market Analyst Ric Spooner
After breaking below technical supports and making a significant retreat from recent peaks, the high growth US technology stocks have been one of the key drivers of short term sentiment in overall equity markets recently.
Facebook , is one of the poster stocks in this category.
After an initial drop it has moved broadly sideways in volatile trading in recent weeks but is still trading at a lofty 32 times 2015 forecast earnings. How it handles chart resistance in the in the $61-$63.50 area will be interesting. Last night’s price action was not encouraging, with a sharp drop away from the trend line marking the bottom end of this resistance zone. The 40 day moving average sits not far above that.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.