The US authorities filed a lawsuit against Facebook - what are the implications?
Asian equities inch down in the face of Wall Street sell-off
On Tuesday, Asian equities headed south in the face of strengthening trade tensions as well as concerns as for the worsening outlook for global tech giants. However, market participants paid attention to prospects of stronger world surge.
MSCI's index of Asia-Pacific equities demonstrated a 0.4% dive, versus losses of over 2% on each of the three American indices overnight.
The major American currency managed to stabilize versus the safe haven Japanese yen having dived for three straight days, while gold, often considered to be a universal store of value in times of political as well as financial uncertainty, headed south.
American Treasuries faced a bit of selling as well, with revenues on 10-year notes rebounding from two-month minimums.
Besides this, E-Mini futures for the S&P 500 tacked on 0.4%, while Dow futures rallied 0.2%.
Nikkei slumped 0.9% in Japan, having dived 1.6% at the start. Besides this, the Shanghai Composite index tumbled 0.4% in China, while the blue-chip CSI300 lost 0.7%.
On Monday, technology equities were heavily affected after Donald Trump had Amazon.com strictly criticized over the pricing of its deliveries across America.
So called FANG equities, including Google, Amazon, , Netflix and Facebook have been solely responsible for a multi-year uptrend in equities worldwide. However, the threat of government regulation has drastically spurred concerns as for their outlook.
As a matter of fact, China's so-called tit-for-tat duties painfully affected the major US currency. However, on Tuesday it faced some buying in early Asia trade to conclude at 105.88 yen, sliding from a three-week maximum of 107.01.
In addition to this, the US dollar index turned to be a bit softer versus a pack of leading currencies.
On Monday, crude prices ascended having dived over 3.7%. However, surging Russian output along with the strengthening US-China trade dispute were still putting pressure.
Russian media companies are complaining that Youtube and Facebook block them. So sad. Now, what about the stock price?
Have you seen the Tesla stock price? But it has already dropped from that high... will it move up again?
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.