Despite upbeat data, the pan-European Stoxx 600 shed 0.6% during morning trade
Wall Street stocks slipped from record levels overnight, weighted by weakness in the technology sector. In general, however, given a lack of any major negative catalysts, the tone remains broadly upbeat. As such, the S&P 500 fell 0.53%, the Dow Jones Industrial Average lost 0.36%, and the tech-heavy Nasdaq Composite slid 0.98%. In individual stocks, Tesla dropped 3.4% after two people were killed in Texas in a crash of one of its models.
Asian stocks were mixed-to-lower on Tuesday, as investors are about a rise in inflation and renewed coronavirus infections that prompt some countries to reimpose lockdowns. Japan’s Nikkei dropped 2% on worries that the possible reintroduction of COVID-19 emergency measures. The Shanghai Composite Index shed 0.13%, the Hang Seng in Hong Kong gained 0.1%. The Kospi in Seoul rose 0.68% and the S&P-ASX 200 in Sydney sank 0.68%.
In Europe, equities slid into negative territory amid lackluster sentiment globally. On the data front, the U.K. jobless rate fell to 4.9% in the quarter through February, from 5.1%. German producer prices for March climbed 0.9% on the month, a gain of 3.7% on the year. Despite upbeat data, the pan-European Stoxx 600 shed 0.6% during morning trade.
Meanwhile, the dollar continues to ease nearly across the board despite risk sentiment has deteriorated somehow. As such, EURUSD exceeded the 100-DMA, now targeting the 1.2100 next upside barrier. The pair climbed to fresh highs around 1.2080 earlier in the day before retreating slightly. Despite the current bullish tone, the common currency may need an extra catalyst to challenge the mentioned hurdle. In the immediate term, EURUSD needs to confirm the breakout on a daily closing basis and stay above the 100-DMA.