Overseas Trading: Stimulus Letdown, Strong Yen Crush Japan Stocks

A surging yen weighed on Japanese automakers, while financial stocks are outperforming in Europe

Aug 3, 2016 at 8:37 AM
facebook twitter linkedin


It was another rough day for Asian stocks, as crude oil prices sagged -- with Japan once again leading the way lower. Specifically, disappointment over the the country's stimulus measures triggered a spike in the yen, pressuring automakers such as Toyota and Nissan -- though Honda stock bucked the trend lower on upbeat earnings. At the close, Japan's Nikkei had plunged 1.9%.

Following Tokyo's lead were Hong Kong's Hang Seng and South Korea's Kospi, which lost 1.8% and 1.2%, respectively. Conversely, China's Shanghai Composite managed a 0.3% win, despite data showing growth in the country's service sector stalled last month.

Stocks in Europe are also struggling amid the sell-off in crude oil, though financials are outperforming thanks to post-earnings pops for bank stocks HSBC and Societe Generale. Currently, the German DAX has edged about 0.1% lower, London's FTSE 100 is off 0.2% after growth in the U.K. services sector plunged to a seven-year low in July, and the French CAC 40 has given back 0.5%.

overseas trading august 3

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. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners