The actions fall as Microsoft Outage reached the main operations of the companies: market update

The global stock markets fell as large technology companies faced new problems due to large technical interruptions, especially that affect Microsoft online services. The Stoxx 600 of Europe index fell by 0.5%, marking its fifth day of losses, the longest streak since October. The London Stock Exchange Group, which directs the London stock market, saw that its actions fell 1% after informing that the global technical problems that prevented the news from being published. Opening operations were delayed in multiple exchanges.

Market impact

In the US, the market prior to the market showed that Microsoft’s shares fell by 2.8%. Although Microsoft said that he had fixed the interruption of cloud services that interrupted bank flights and services, the market reaction was still negative. The Crowdstrike Inc. cybersecurity firm fell to 14% after announcing that it was affected by the interruption. The main airlines such as United Airlines and Delta Air Lines saw that their shares fell into more than 1%.

Contracts in the S&P 500 fell by approximately 0.2%, while Nasdaq 100 slid into 0.4%. This occurs after a difficult week for the Heavy Technological Nasdaq, which has decreased by 3.7%, potentially marking its worst week since April. In contrast, the Russell 2000 index, which focuses on smaller companies, increased 2.3% this week.

Reasons behind the fall

Investors moved away from large technological actions to smaller companies because they expect the Federal Reserve to reduce interest rates in September. This belief was reinforced by recent data that shows the greatest increase in unemployment claims since the beginning of May. In addition, the possibility of more protectionist policies under a possible presidency of Donald Trump was added to the uncertainty of the market.

Mohit Kumar, Jefferies International Ltd. strategist, said: “The Fed advancing towards a tariff cut and Trump’s probabilities should be positive for risk.” However, he also mentioned that investors may need to rethink their investments such as summer approaches, affecting the sectors with a heavy positioning.

Expert opinions

The Goldman Sachs strategist, Christian Mueller-Glissmann, warned about a possible setback of the summer stock market due to “weaker growth data, and more expectations of central banks and a growing political uncertainty in US elections.”

Company news

In Europe, Sartorius AG’s shares fell 13% after the German electronic products manufacturer reduced his guide all year. Ubisoft Entertainment SA, a computer manufacturer, saw that their actions fell by more than 8% after presenting mixed objectives throughout the year. Similarly, the actions of the Evolution AB games firm fell after the profits that lost the estimates.

In the US, Netflix Inc. shares increased in the extended trade after the transmission giant reported strong additions of subscribers.

Asia-Pacific market

Previously, the MSCI Asia Pacific index decreased by more than 1%, established for its greater weekly fall in three months. Chip actions continued to fall in the midst of concerns about the new restrictions of the United States in sales to China. Taiwan Semiconductor Manufacturing Co. actions decreased for the third day.

Key events this week

Market movements

Stocks

• Stoxx Europe 600 fell by 0.6% at 9:08 am, London time.

• Futures S&P 500 fell 0.2%.

• Nasdaq 100 Futures fell by 0.4%.

• The future industrial average Dow Jones fell 0.3%.

• The MSCI Asia Pacific index fell by 1.3%.

• The MSCI emerging market index fell by 1.5%.

Coins

• The dollar index remained stable.

• The euro fell 0.1% to $ 1,0882.

• The Japanese yen remained stable at 157.38 per dollar.

• The Yuan on the high seas was stable with 7,2806 per dollar.

• British pound fell 0.1% to $ 1,2927.

Cryptocurrencies

• Bitcoin fell 0.3% to $ 63,632.26.

• Ether fell 0.9% to $ 3,382.05.

Captivity

• The 10 -year treasure bond performance remained stable at 4.20%.

• The 10 -year yield from Germany remained stable at 2.43%.

• The 10 -year yield from Great Britain increased by two basic points to 4.08%.

Basic products

• Brent Crude fell 0.3% to $ 84.88 per barrel.

• Spot Gold fell 1% to $ 2,420.48 per ounce.

Also read: Microsoft’s world interruption interrupts flights, banks, media and companies around the world