The FTSE 100 was set to fall today after sharp sell-offs hit US tech stocks again overnight.
Facebook fell sharply after reports that it was set to face a monopoly investigation from the Federal Trade Commission and the Nasdaq index of technology shares had a rough session of sell-offs.
Google is also facing similar probes, and the Facebook concerns served as a new warning to investors that the sky-high valuations of technology shares may be based on thin foundations.
That said, investors are still being pushed into tech stocks in the absence of returns elsewhere. Worldwide interest rates remain super-low, with few signs that any central bankers are looking to tighten monetary policy. Last night saw the US Federal Reserve and Bank of Japan retain their stance of monetary stimulus and the Bank of England is set to follow suit at lunchtime today.
Research firm Third Bridge pointed out ahead of the figures that commuting volumes and planned business travel will only recover 60% by 2022 as the virus accelerates a decade-long decline in rail season ticket sales. Trainline will have benefited short-term from travellers’ preference for e-ticketing during the pandemic but advance purchase rail ticket sales only account for around one-in 10 purchases. “The headroom for growth by Trainline in other ticket categories is limited,” said Third Bridge’s Dan Thomas.