Tech firms lead stock advance
U.S. equities gained, led by FANG shares, while European stocks pared losses following a mixed session in Asia as a big week for central-bank policy gets underway. Crude oil slumped for the first time in three days.
Facebook, Apple, Netflix and Google parent Alphabet led the Nasdaq Composite higher, while the Stoxx Europe 600 index closed little changed. Deutsche Bank boosted lenders on reports that it’s considering creating a “non-core unit” to wind down legacy assets as part of a broader overhaul. Equities in Hong Kong rose after the government suspended a controversial extradition bill.
The dollar briefly weakened after a Federal Reserve survey of factories in New York State plunged in June by the most on record, before climbing back from the day’s lows.
Investors will be scrutinizing the Fed’s decision and messaging on Wednesday for signals on the chances of rates cuts ahead. Meanwhile, U.S. Commerce Secretary Wilbur Ross reiterated that the prospect of a major trade deal is unlikely to emerge from a possible meeting between President Donald Trump and Chinese President Xi Jinping at the Group of 20 summit in Osaka, Japan, this month.
Huawei braces as U.S. vice tightens
Huawei, the embattled Chinese technology giant, is slashing its sales expectations for the year by about $25 billion as the Trump administration’s clampdown on the firm takes a bite out of its business. In 2018, Huawei took in more than $105 billion in sales, helped by its fast-growing smartphone business. Huawei CEO Ren Zhengfei said in January that he predicted 2019 sales would jump to $125 billion. But that was before the United States in May cut Huawei off from the U.S. chips, software and other parts that go into its handsets and telecommunication equipment, saying that the company represented a threat to national security.
Sotheby’s to be taken private
In recent years, the competition between the world’s two largest auction houses, Sotheby’s and Christie’s, has seemed at times like a bit of an unfair fight. Sotheby’s, which is publicly traded, has lost out to its privately held archrival for several headline-grabbing consignments.
Last year, Christie’s sold the Peggy and David Rockefeller collection for $835 million, the highest-grossing auction ever of a private collection. On Monday, Sotheby’s moved to level the playing field, agreeing to be acquired by French-Israeli telecommunications entrepreneur Patrick Drahi, in a deal worth $3.7 billion. The purchase returns the only publicly traded major auction house to private ownership after 31 years on the New York Stock Exchange.