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Overseas Trading: Bank of England Rate Cut Keeps Fueling Global Markets

The Bank of England's (BoE) rate cut continues to impact stocks globally

Aug 5, 2016 at 8:42 AM
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Asian stocks finished the week on a mixed note, as traders reacted to the Bank of England's (BoE) first rate cut in seven years. However, moves in most regional markets were somewhat muted ahead of the release of the U.S. nonfarm payrolls report. Hong Kong's Hang Seng was the biggest mover, jumping 1.4% as bank stocks rallied on the BoE easing measures, while South Korea's Kospi tacked on a cool 0.9%.

Elsewhere, Japan's Nikkei was largely unchanged -- despite a 4.4% post-earnings gain for camera maker Nikon -- but for the week surrendered roughly 2% following last Friday's surprise Bank of Japan decision. Rounding things out, China's Shanghai Composite gave up 0.2% on the day.

Meanwhile, the BoE rate cut is having a decisively positive effect on European stocks. The French CAC 40 has gained 0.4%, and the German DAX has edged 0.2% higher, despite an unexpected decline in manufacturing orders. London's FTSE 100 is up a more modest 0.1%, with heavy earnings-related losses at RBS offset by strength in homebuilders.

overseas trading august 5

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