Overseas Trading: Anxiety Spike Drubs Global Stocks

Bond yields are near record lows in Japan and elsewhere, as stock volatility has traders seeking shelter

by Alex Eppstein

Published on Jun 10, 2016 at 8:42 AM
Updated on Jun 24, 2020 at 10:16 AM

Asian stocks ended the week on a low note, as commodity prices were hit by a stronger dollar. Japan's Nikkei surrendered 0.4%, with anxiety spiking ahead of next week's Bank of Japan (BoJ) policy meeting. Also, the government's benchmark bond yield touched a record low of negative 0.145%, suggesting investors are rushing to safe-haven investments rather than staying in a volatile stock market.

Elsewhere, South Korea's Kospi dipped 0.3%, amid an investigation into conglomerate Lotte Group. Hong Kong's Hang Seng reopened after a holiday, and promptly fell 1.2%. Meanwhile, markets in China remained closed for the Dragon Boat Festival.

A sharp drop in crude oil prices is hitting European stocks hard, as is uncertainty ahead of a number of key events -- including the U.K.'s "Brexit" vote later this month. Consequently, bond yields are approaching record lows as investors rush to safety. At last check, London's FTSE 100 is down 1.7%, as Tesco shares dive after the retailer sold its controlling stake in a Turkish grocery business. Rounding things out, France's CAC 40 has plunged 2%, while the German DAX is staring at a 2.3% deficit.

overseas trading june 10

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