European markets were under pressure Tuesday morning, as a rout in technology stocks pulled down markets around the globe, but have avoided major selloff.
Wall Street futures were firmer on Tuesday after Monday's selloff that marked the worst start to April since the Great Depression, according to Bloomberg. The Dow Jones Industrial Average is expected to gain 17 points at open, futures indicated at 7:35am EST, while the S&P 500 is expected to add 3.87 points and Nasdaq could add 22 points at open.
Tesla Inc. (TSLA - Get Report) shares were 0.65% in Tuesday premarket trading, after falling more than 5% on Monday. Tesla CEO Elon Musk said in a tweet late Monday that he was "back sleeping at the factory" to oversee production of the Model 3. The company was rebuked by the National Transportation Board after the electric car maker wrote in a blog that a car involved in a fatal accident in California was in autopilot mode at the time of the accident.
European fell on opening after a four-day holiday weekend. London's FTSE was down 0.22% to 7,042 at 12:45 pm London time, paring earlier losses. France's Cac 40 was marked 0.51% lower at 5,128 and Germany's Dax was down 0.92% to 11,985.
The Stoxx Europe 600 Technology Index was marked 1.14% lower, as the tech selloff continues in Europe, extending its year-to-date fall of 3.38%.
German semiconductor maker Infineon Technologies AG (IFNNY) shares were down 1.89% to €21.33 on reports that Action Alerts Plus holding Apple Inc. (AAPL - Get Report) is looking to bring chipmaking in-house by 2020.
ASML Holding NV (ASML - Get Report) , the maker of chip making machines, saw shares fall 0.44% to €159.45. Chipmaker STMicroelectronics NV (STM - Get Report) , which provides the phone's accelerometers, gyroscopes and motion sensors, fell 3.03% in Paris, changing hands at €17.44.
With concerns about tech companies mounting, it will be interesting to see if Spotify's IPO is well-received Tuesday.
Spotify IPO day (at least they sprung for the traditional NYSE sign) pic.twitter.com/KddmnW6Pe8— Brian Sozzi (@BrianSozzi) April 3, 2018
The New York Stock Exchange on Monday set a reference price of $132 for Spotify, which will trade under the symbol SPOT. The reference price however, is not an opening price but will play part in the eventual price, which will be determined by the buy and sell orders on Tuesday morning.
Sky plc (SKYAY) shares however gained more than 2% Tuesday to 1,323.5 pence, after Twenty-First Century Fox Inc. (FOXA) has offered to ringfence Sky News and possibly sell it to the Walt Disney Co. (DIS - Get Report) in its bid to gain approval for its acquisition of the British company. Sky shares however are trading well above Fox's offer 1,075 pence and Action Alerts Plus holding Comcast Corp.'s (CMCSA - Get Report) rival offer of 1,250 pence.
Asia's equity markets were lower Tuesday, taking a cue from losses on Wall Street. Worries about an impending trade war between the U.S. and China also sent ripples through the markets.
Japan's Nikkei lost 0.45% to 21,292, and the Topix was down 0.29%. In Hong Kong, the Hang Seng lost 0.37% and on mainland China, the Shanghai Composite Index lost 1.18%.
West Texas Intermediate crude rose 0.2% to $63.13 a barrel on Tuesday, after losing 3% on Monday. Gold fell 0.1% to $1,339.70 an ounce after gaining 1.2%.