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Stocks Take Breather as Brexit, U.S. Stimulus Talks Stall

Asian equities eased from record highs on Thursday as stalled U.S. stimulus talks and a selloff in tech stocks weighed, while sterling traders sat on a knifes edge as lastditch Brexit negotiations yielded only an agreement to keep talking.

MSCIs broadest index of AsiaPacific shares outside Japan eased 0.34. Japans Nikkei erased early losses to trade 0.1 lower. Both are up more than 60 from March lows. SP 500 futures meanwhile pared early gains and steadied in Asian afternoon trade.

U.S. Treasuries rose while the dollar slightly eased after a volatile overnight session in currency markets, with traders now looking ahead to a European Central Bank monetary policy meeting. Sterling teetered at 1.3366 as it awaits a Brexit resolution.

Weve risen so far so fast that its making investors cautious, said Michael McCarthy, chief strategist at stockbroker CMC Markets in Sydney.

The fall in tech stocks was a bit of a concern, given that theyve risen in all market weather over the last six weeks, so to see them come off might signal that were looking at a short term corrective move.

A near 2 drop in the Nasdaq on Wednesday was driven by a 1.9 fall in Facebook shares after U.S. regulators filed lawsuits alleging the company used its dominance to buy or crush rivals, harming competition.

Meanwhile, SP Dow Jones Indices said on Thursday it would remove ten Chinese companies from its equities indices and several others from its bond indices.

This move comes after a Trump…

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