Overseas Trading: European Stocks Clobbered; Pound Hits 31-Year Low

Even though stocks in Japan managed sharp gains, stocks across Europe are selling off again following last week's "Brexit" vote

Jun 27, 2016 at 8:50 AM
facebook twitter linkedin

Stocks in Asia were mostly higher on Monday, bouncing back from last week's post-"Brexit" drubbing. Japan's Nikkei led the way with a 2.4% burst, while the yen -- seen as a safe-haven asset -- continued to strengthen, pounding automakers. Moreover, Reuters reported that Japanese Prime Minister Shinzo Abe gave Finance Minister Taro Aso the green light to take actions toward stabilizing the yen, if necessary. 

Meanwhile in China, the country's central bank weakened the yuan by the most in almost a year following the "Brexit" vote, and the currency hit its lowest point against the dollar since 2010 -- helping the Shanghai Composite to a 1.4% gain. In South Korea, the Kospi added 0.1%, while Hong Kong's Hang Seng slipped 0.2%.  

Despite Asia's rebound and U.K. Chancellor George Osbourne's assurances of "further well-thought-through contingency plans" following the "Brexit" decision, European stocks are facing heavy losses once again. Financial stocks are some of the hardest hit, with banking heavyweights such as Deutsche Bank, UBS, and Barclays all trading sharply lower. Also, the pound continues to plummet, earlier hitting its lowest point in more than three decades. Looking at the indexes, London's FTSE 100, Germany's DAX, and France's CAC 40 were all 2% lower at last check. 

Overseas Trading June 27

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox. 


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners