European stocks are set to slip after a mixed day on Wall Street on growing speculation the tech sector rally may be running out of steam.
Euro Stoxx 50 futures fell, while US contracts edged higher after various US non-tech sectors climbed on Monday. Nvidia, the chipmaker at the heart of the artificial-intelligence revolution, extended a three-day rout of about $430 billion — crossing the technical threshold of a correction.
Asian equities advanced with shares in Japan outperforming the region. Investors snatched up value stocks, rotating out of the technology sector into other parts of the market.
The yen strengthened, while the greenback dipped against most of its Group-of-10 peers. Treasuries were little changed during Asian trading.
“As we approach the quarter-end, global investors are rebalancing their portfolio, selling assets that have performed well recently and buying names that have lagged,” said Hideyuki Ishiguro, chief strategist at Nomura Asset Management Co. That’s likely to help support the broader Topix index, he said.
Market participants will be also keeping a keen eye on France’s main political parties which will hold a debate Tuesday evening ahead of the first round of legislative elections on Sunday.
