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GLOBAL MARKETS-Stocks fall as techs extend selloff; dollar gains
June 15, 2017 / 4:03 PM / 2 months ago

GLOBAL MARKETS-Stocks fall as techs extend selloff; dollar gains

* Wall St lower as tech slide resumes

* Dollar hits June high after data backs continued Fed tightening

* Three BoE policymakers vote for rate hike

* Yields inch up from depressed levels on U.S. data, Fed aftermath (Updates with early U.S. markets' trading, changes dateline, previous LONDON)

By Caroline Valetkevitch

NEW YORK, June 15 (Reuters) - World stock indexes fell on Thursday as technology shares extended their recent selloff, while the prospect of tighter monetary policy in the United States and Britain pushed up the dollar.

High global inventories and doubts about OPEC's ability to implement agreed production cuts pressured oil prices.

The Federal Reserve on Wednesday raised interest rates, as widely expected, and signaled another hike could follow this year. Its statement prompted worries for some investors that the tone was hawkish. "When you look at the economic data, it really doesn't point to an aggressive Fed. But you listen to the comments yesterday, and they’re still on the aggressive side as far as raising rates," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

In a sign that the squeeze on consumers may get tighter before long, three Bank of England policymakers voted to raise rates against five for keeping rates on hold. Economists polled by Reuters had expected a 7-1 vote in favor of no change.

The recent selloff in tech shares, which have led sector gains so far this year, has been prompted in part by investors trying to take profits in an area that has led market gains this year and has fueled concern about stretched valuations in the overall market.

The U.S. technology index was down 0.8 percent, leading a broad decline in the S&P 500, pulled down by heavyweights including Apple Inc and Alphabet Inc after bearish research comments. The tech index is down about 4 percent since Thursday's close.

The Dow Jones Industrial Average was down 43.57 points, or 0.2 percent, to 21,330.99, the S&P 500 had lost 11.44 points, or 0.47 percent, to 2,426.48 and the Nasdaq Composite had dropped 55.35 points, or 0.89 percent, to 6,139.54.

The pan-European FTSEurofirst 300 index lost 0.3 percent and MSCI's gauge of stocks across the globe fell 0.9 percent.

The dollar rose to its highest in more than two weeks as solid readings on the U.S. economy helped strengthen the case for the Fed to continue tightening.

The number of Americans filing unemployment claims fell more than expected last week, suggesting slack in the labor market was shrinking, and the Philadelphia Fed business conditions for June beat expectations after a strong reading in May.

The reports followed weak inflation data on Wednesday.

The dollar index, which tracks the U.S. currency against six major peers, rose to 97.557, its highest since May 30.

The stronger-than-expected U.S. economic data also boosted U.S. Treasury yields, with two-year yields touching their highest in three months. But most yields remained depressed after their biggest plunge in a month Wednesday.

U.S. two-year yields hit 1.368 percent, their highest in three months.

Brent crude oil was down 0.3 percent to $46.87 a barrel after hitting its weakest since May 5. U.S. light crude was down 0.6 percent at $44.46.

For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets

Additional reporting by Lewis Krauskopf in New York and Nigel Stephenson in London; Hideyuki Sano in TOKYO, Ritvik Carvalho and Abhinav Ramanarayan, and Jan Harvey in LONDON; Editing by Louise Ireland and Nick Zieminski

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