World equities fell more than one per cent yesterday, sliding to three-month lows, as technology shares slumped on fears of slowing demand, while rising US bond yields made stocks less compelling.
On Wall Street, the Philadelphia Semiconductor index tumbled 3.07 per cent after Swiss vacuum valve maker VAT Group said demand was softening from chip equipment makers.
Among the tech sector’s worst performers in Europe were Austrian chipmaker AMS fell 6.6 per cent and STMicroelectronics was down 5.6 per cent.
Benchmark US 10-year Treasury notes fell 3/32 in price to push their yield up to 3.2196 per cent.
But the yield on shorter-term two-year and three-year notes was just under or hovered at three per cent, respectively, providing long-absent competition for equities.
The euro and sterling rose, underpinned by optimism for a Brexit deal, while the dollar lost ground against a basket of currencies.