Global stock markets sink, slammed by tech losses

Youkyung Lee, The Associated Press</span>
Published Wednesday, March 28, 2018 12:08AM EDT
Last Updated Wednesday, March 28, 2018 6:57AM EDT

SEOUL, Korea, Republic Of -- Shares fell in Europe and Asia on Wednesday as tech stocks extended losses following sell-offs of their U.S. peers overnight. Investors are selling technology-related shares on concern governments might tighten scrutiny over Facebook after it was revealed that users' data was shared with a consulting firm affiliated with U.S. President Donald Trump.

KEEPING SCORE: Britain's FTSE 100 dropped 1 per cent to 6,930.51. France's CAC 40 slid 1.4 per cent to 5,043.96 and Germany's DAX lost 1.6 per cent to 11,784.17. Futures augured weak starts on Wall Street. Dow futures fell 0.3 per cent while S&P futures also retreated 0.3 per cent.

ASIA'S DAY: Japan's Nikkei 225 sank 1.3 per cent to 21,031.31 and South Korea's Kospi slid 1.3 per cent to 2,419.29. Hong Kong's Hang Seng index sank 2.5 per cent to 30,022.53 while China's Shanghai Composite Index dropped 1.4 per cent to 3,122.29. Australia's S&P/ASX 200 retreated 0.7 per cent to 5,789.50. Stocks in Taiwan, Singapore and other Southeast Asian countries also fell.

BAD DAY FOR TECH: Investors cut their holdings of Asian tech stocks after a series of incidents sent their U.S. peers lower again. One of those cases is a report that authorities will investigate a fatal crash that involved a Tesla electric SUV equipped with a semi-autonomous control system. In Asia, Samsung Electronics Co. fell 2.6 per cent and Sony Corp. lost 1.1 per cent. Softbank Group Corp. slumped 4 per cent. Tencent Holdings Ltd. was down 4.6 per cent.

ANALYST VIEWPOINT: "So what spooked markets? Well, it looks like the rearing of the (ugly) Facebook privacy infringement was a convenient excuse to sell-off ahead of the long weekend," Mizuho Bank said in a commentary.

OIL: Benchmark U.S. crude lost 68 cents to $64.57 per barrel in electronic trading on the New York Mercantile Exchange. The contract declined 30 cents to settle at $65.25 a barrel on Tuesday. Brent crude, used to price international oils, fell 52 cents to $68.94 per barrel in London.

CURRENCIES: The dollar rose to 105.64 yen from 105.34 yen. The euro fell to $1.2386 from $1.2404.

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