[MARKET ANALYSIS] Global equities hit, led by Tech and Basic Resources amid a number of factors

European bourses (STOXX 600 -1.4%) start Friday’s session on the back foot and look set to end their 2-day win streak, a streak that failed to reach 3 days in late-March. SMI is the only index in the green, as it catches up from Thursday’s gains across the continent. The DAX, AEX, and CAC 40 all print losses exceeding 1%, as tech names weigh (see more below).
Sectors confirm the negative bias, with only Health Care posting solid gains. Basic Resources and Tech sit at the bottom of the pile. Metal prices have slumped (XAU/USD -1.8%, XAG/USD -6%), as markets price in further rate hikes across the globe. In addition, South Korea’s KOSPI closed with losses of over 6%, adding to the pressure on silver prices as it highlights silver’s high-beta characteristics (as it stands, KOSPI-Silver correlation is c. +0.7).
For the tech sector, analysts characterise the sell-off as a function of profit-taking. Commentary also highlights worries over the strikes at Samsung Electronics, stating that it may drive consumer inflation and slow the AI data centre boom through further memory chip crunch.
Single-stock stories have been light thus far. Stellantis expanded its cooperation with Dongfeng in a USD 1.2bln deal to make Jeeps and Peugeots in China, LVMH agreed to sell its Marc Jacobs label to WHP Global, and HSBC reportedly paused its USD 4bln private credit fund investment.
US equity futures fall as the global risk tone sours, with bond markets selling off. The surge to ATHs across the US equity space has been on a rocky footing anyway, as the market breadth fails to confirm the bid higher. One point to note, a record 30 S&P 500 stocks hit one-year lows on Wednesday.