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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
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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

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