Published: Wed, June 14, 2017
World | By Paul Elliott

Asian stocks up as investors shrug off tech rout, eye Fed

Asian stocks up as investors shrug off tech rout, eye Fed

General Electric is jumping after the conglomerate said CEO Jeffrey Immelt will step down. Platinum rose 0.3 percent to $942.74 per ounce.

The Dow Jones industrial average rose 73 points, or 0.3 percent, to 21,308. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.39%, while the Stoxx Europe 50 index, which includes some major United Kingdom companies, added 0.29%. Facebook fell $1.16 to $148.44 while Microsoft sank 54 cents to $69.78.

A bout of profit-taking in richly-valued technology stocks caused the Nasdaq to suffer its worst two-day drop in more than six months on Monday. John Flannery, the head of GE's health care division, will take over the post in August.

But now the 1.9 percent forecast for the end of this year, which Fed officials have maintained since December 2015 when they started raising rates from zero, also looks at risk.

Lufthansa climbed 3% after Credit Suisse upgraded its rating on the stock to "Neutral" from "Underperform".

OIL: Benchmark U.S. crude added 23 cents to $46.31 per barrel on electronic trading in New York Mercantile Exchange. Brent crude, used to price worldwide oils, added 46 cents, or 1 percent, to $48.61 a barrel in London. Australia's S&P/ASX 200 jumped 1.4 percent to 5,753.90.

Some of the best-performing stock groups traded lower.

USA interest rates futures slipped on Tuesday as traders seemed fully prepared for the Federal Reserve to raise interest rates for a second time in 2017 at its upcoming two-day policy meeting that will begin later in the day.

Some analysts had predicted Asian tech shares would not see as intense a selloff as their US peers as their valuations were less stretched. The yield on the 10-year Treasury note fell to 2.19 percent from 2.20 percent late Friday.

The French multi-national investment bank said "Brexit negotiations will add to policy uncertainty" for the Pound, while forecasting the Euro to bounce back and the USA dollar to fade after years of steady rises. Among energy companies, Exxon Mobil rose 80 cents, or 1 per cent, to $82.93 and Chevron picked up $1.64, or 1.5 per cent, to $108.04. The British pound continued to fall.

It briefly hit a low of $1,262.61 early in the session, its weakest since June 2. Traders are also looking forward to tomorrow's announcement from the Federal Reserve, which will occur after the European close on Wednesday. France's CAC 40 dropped 1.1 per cent and the Germany DAX shed 1 per cent. Britain's FTSE 100 lost 0.2 per cent. As the U.S. dollar interest rate has climbed while the city's bank rates remained low, the widening interest rate differential has led to selling of Hong Kong dollars. The benchmark Nikkei 225 in Japan slipped 0.5 percent and South Korea's Kospi declined 1 percent.

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