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Overseas Trading: Central Bank Decisions, 'Brexit' Fears Weigh on Stocks

Stocks in Europe and Asia are lower as central banks leave their monetary policies unchanged

Jun 16, 2016 at 8:42 AM
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Global stock markets are in the red today, following yesterday's lack of policy change from the Federal Open Market Committee (FOMC), and continued doubts about how many interest rate hikes can be expected this year. The Bank of Japan (BoJ) also kept its monetary policy unchanged in an attempt to not rattle markets with the U.K's "Brexit" referendum looming next week. The decision sent the yen soaring against the dollar, sinking Japan's Nikkei 3.1% for the day. 

Stocks across Asia followed Japan's bearish lead. China's Shanghai Composite closed down 0.5%, while Hong Kong's Hang Seng gave up 2.1%, and South Korea's Kospi shed 0.9%.

Stocks in Europe are also lower at midday, after the Bank of England (BoE) said next week's "Brexit" vote could hurt the global economy, citing this as a key reason for keeping interest rates steady at their record low of 0.5%. "A vote to leave the EU could materially alter the outlook for output and inflation," the central bank stated, as polls show the "leave" vote gaining an edge. London's FTSE 100 was last seen 0.8% lower, France's CAC 40 is down 0.6%, and Germany's DAX has dropped 1%.

overseas stocks june 16

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