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Markets: Tech rebound helps European stocks rise after Wall St record

So much for the tech wobble. Investors are now moving back into the sector, helping European stocks rally after Wall Street indices closed at record highs overnight.

What you need to know:

● European tech stocks join global rebound
● S&P 500 and Dow set fresh closing records
● Crude prices fall as Opec’s May output rises
● Federal Reserve expected to lift rates by a quarter point

The demand for tech stocks comes after heavy selling late last week and into Monday, which was sparked by concerns the sector is overheating (on which, more here.)

Europe’s chipmakers are standing out, with Dialog Semiconductor up 1.9 per cent and ST Micro up 1.8 per cent.

The Euro Stoxx technology index is up 0.6 per cent, helping the wider Euro Stoxx 600 rise 0.2 per cent.

The Xetra Dax 30 is up 0.4 per cent in Frankfurt, with the CAC 40 up 0.4 per cent in Paris.

The FTSE 100 is flat, missing out on the gains as a stronger pound casts a shadow over the main London stock index.

The S&P 500’s record close took it to 2,440, up 0.5 per cent on the day, and almost 9 per cent on the calendar year. The Dow Jones Industrial Average new record is 21, 328. It is up almost per cent for 2017.

Oil prices fell after a report showed output from Opec countries rose in May, despite an agreement from the cartel to cut production.

Benchmark Brent crude fell 0.8 per cent to $48.31 a barrel and US benchmark West Texas Intermediate slipped 1 per cent to $46.00 a barrel.

The dollar is drifting in the run-up to today’s Fed meeting. The index tracking the world’s reserve currency is down 0.1 per cent. The euro is up 0.1 per cent at $1.1220. The pound is up 0.3 per cent at $1.2785.

Brendan Mulhern, global strategist at Newton Investment Management, says markets are in “wait and see mode” as the Fed meeting looms:

All are eyes on the Fed . . . given a rate increase is heavily discounted, the more market sensitive elements of the meeting will relate to signals on the course of expected course of policy, with respect to the path for rates and any greater clarity around what the Fed’s intentions are for its bloated balance sheet.

Conviction in the Fed’s stated pace of rate hikes has been on the slide lately, both among Fed board members and the markets, as inflation measures have once again started to decline while the US yield curve has continued to flatten into the meeting