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Overseas Trading: China Data, Brexit Fears Hit Global Stocks

Stocks in Asia and Europe are lower following manufacturing data out of China and a new poll showing growing support for a "Brexit"

Jun 1, 2016 at 8:44 AM
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Stocks throughout Asia closed lower on Wednesday, as mixed manufacturing data out of China dimmed the outlook for additional monetary easing in the near term. Specifically, China's purchasing managers index (PMI) was flat month-over-month in May -- but remained in expansion territory -- while the Caixin manufacturing PMI fell slightly to notch its 15th straight month of contraction. As such, the Shanghai Composite edged 0.1% lower, and Hong Kong's Hang Seng dropped 0.3%. 

Over in Japan, the Nikkei snapped its five-day win streak, falling 1.6%. The Tokyo-based index was weighed down by a stronger yen, and confirmation of Prime Minister Shinzo Abe's plan to delay to a sales-tax increase until 2019, due to "concerns about long-term stagnation in global demand." Elsewhere, South Korea's Kospi closed fractionally lower. 

European stocks are also trading lower at midday. China's lackluster manufacturing data is weighing on mining stocks, while eurozone PMI edged slightly lower last month and U.K. manufacturing moved just above the key 50 level. Moreover, a newly released poll revealing growing support for a "Brexit" is also rattling markets and sending the pound lower. London's FTSE 100 was down 0.9% at last glance, with France's CAC 40 dropping 0.8%, and Germany's DAX shedding 0.7%.
 

Overseas Markets June 1


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