Overseas Trading: British Fund Freezes Rattle Global Markets

The suspension of several British real estate funds has renewed "Brexit" fears, pressuring global stocks

by Alex Eppstein

Published on Jul 6, 2016 at 8:38 AM
Updated on Jun 24, 2020 at 10:16 AM

"Brexit" fears were rekindled overnight, sparked by the temporary suspension of three U.K. real estate funds. This took a toll on Asian stocks, as traders flocked instead to safe-haven assets like bonds and currencies. Specifically, Japan's Nikkei dove nearly 1.9% amid a stronger yen -- while the nation's 20-year bond yield fell into negative territory for the first time ever. Following suit were Hong Kong's Hang Seng and South Korea's Kospi, which lost 1.2% and 1.9%, respectively.

Chinese markets were able to stave off the regional bloodbath, as the Shanghai Composite added nearly 0.4%. Benefiting from relative isolation from potential "Brexit" repercussions, the index closed above the round 3,000 millennium level for the second straight session.

Meanwhile, European markets are being rattled by the aforementioned real estate fund freeze. London's FTSE 100 has slid 1.6%, with homebuilder stocks particularly hard-hit -- and the pound tumbling to a fresh 31-year low. Rounding things out, the French CAC 40 has dropped nearly 2%, and the German DAX is down 1.9%.

overseas trading july 6

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. 


A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!


  
 
 

Partnercenter