Overseas Trading: European Stocks Lower On ECB Rumors, Brexit Pummels Pound

Speculation is swirling that the ECB may taper its bond purchase program ahead of schedule

Oct 5, 2016 at 8:40 AM

Stocks in Asia finished the day mixed, as crude futures recovered during the session. Japan's Nikkei tacked on 0.5%, with a weaker yen boosting stocks following Tuesday's hawkish Fed comments out of the U.S. and speculation the European Central Bank (ECB) could be prepared to taper its bond purchases ahead of schedule. Hong Kong's Hang Seng reversed early losses to close 0.4% higher, thanks to gains in energy and bank stocks.

The South Korean Kospi bucked the bullish trend, however, shedding 0.1% on stronger-than-expected inflation data. Specifically, the country's consumer price index (CPI) rose at its fastest pace in seven months in September. Markets in mainland China remain shuttered for Golden Week.

European stocks are in the red at midday, as traders digest the ECB rumors -- though ECB President Mario Draghi denied the claims. Brexit concerns continue to weigh on the pound, too, pushing sterling to a fresh 31-year low against the U.S. dollar. London's FTSE 100, France's CAC 40, and Germany's DAX have shed 0.4% each at last check.

overseas stocks october 5

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