Overseas Trading: Energy, Bank Stocks Smack Global Markets

German-based Deutsche Bank is leading a sell-off in financial shares

by Karee Venema

Published on Sep 26, 2016 at 8:47 AM

Asian benchmarks followed U.S. stock markets into the red, as diminished hopes that an output agreement will be reached at this week's meeting of global oil producers weighed on regional energy stocks. China's Shanghai Composite fared the worst of its peers, shedding 1.7%. Hong Kong's Hang Seng, meanwhile, gave back 1.6%, and South Korea's Kospi surrendered 0.3%.

Elsewhere in the region, Japan's Nikkei plunged 1.3%, after Bank of Japan (BoJ) Governor Haruhiko Kuroda signaled the central bank was prepared to make steeper cuts in interest rates -- sending bank and insurance shares tumbling -- in the wake of last week's policy shift. Apple Inc. (NASDAQ:AAPL) suppliers also took a hit, amid speculation of lagging sales for the company's new iPhone 7.

European stocks are in the red at midday, as financial and energy shares swoon. Deutsche Bank AG is one of the leading laggards -- down roughly 6% -- after a report in Germany's Focus magazine indicated German Chancellor Angela Merkel had dismissed giving state aid to the bank. At last check, the French CAC 40 is down 1.7%, the German DAX is off 1.6% -- despite a report showing business sentiment hit its highest level in two years in September -- and London's FTSE 100 is 1.2% lower.

overseas trading september 26

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