We hope you enjoyed your weekend because it’s looking like a weak start to the trading week. Futures were actually in positive territory overnight but have been sinking ever since Europe opened for trading. The culprit once again is trade concerns with China, and the technology sector is bearing the brunt of the weakness following Friday’s blacklisting of Huawei by the US.
We’ve just published today’s Morning Lineup featuring all the news and market indicators you need to know ahead of the trading day.
With tech facing much of the selling this morning, semiconductors have been especially weak. Making matters worse for the sector this morning is that Morgan Stanley is recommending that investors reduce exposure to the sector. This is sure to make what has already been a weak technical picture for the sector worse as the sector was already down nearly 13% from its late April high heading into today. If that 200-DMA around 1,300 breaks this week, it wouldn’t be a good sign for the technology sector. Watch how the sector reacts to opening weakness this morning for any signs of investor interest.
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