Overseas Trading: U.S. Rate-Hike Fears Punish Global Stocks

Stocks in Asia tanked on U.S. rate-hike fears, while European markets fell in step with crude oil prices

by Alex Eppstein

Published on Sep 12, 2016 at 8:31 AM
Updated on Jun 24, 2020 at 10:16 AM

Asian stocks took their cues from U.S. markets, which sold off on Friday amid Fed-induced rate-hike fears. Hong Kong's Hang Seng was the worst-performing index, shedding 3.4% -- its largest one-day percentage drop since February -- while on the mainland, the Shanghai Composite dove 1.9%.

In Japan, while life insurance shares rallied and July core machinery orders rose a sharper-than-expected 4.9% month-over-month, the island nation's Nikkei shed 1.7%. South Korea's Kospi tanked 2.3%, pressured by Samsung stock, which gave up 7% as the Galaxy Note 7 scandal continued to weigh.

Concerns of a Fed interest rate hike are also rattling European markets, with a drop in crude oil prices taking a heavy toll on energy stocks. Drilling down, France's CAC 40 has plunged 2.1%, the German DAX is down 1.8%, and London's FTSE 100 has surrendered 1.7%. All in all, this is shaping up to be the worst day for global benchmarks since the Brexit vote in late June.
 

overseas trading september 12

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