Overseas Trading: Pound 'Flash Crash' Spooks Global Stocks, Boosts U.K.

A "flash crash" in the British pound -- possibly due to Brexit concerns -- sent global stocks sliding

by Kirra Fedyszyn

Published on Oct 7, 2016 at 8:45 AM

Stocks in Asia finished lower, as traders awaited today's U.S. jobs report -- which came in lower-than-expected -- looking for potential clues on the Federal Reserve's next interest-rate move. Weighing on stocks globally was a "flash crash" in the value of the British pound, which briefly hit a fresh 31-year low against the U.S. dollar.

While the cause of the sudden dip isn't known, Brexit concerns have weighed on the currency -- with recent reports suggesting French President Francois Hollande advised the European Union to take a hard line in negotiations with the U.K. Speculation over a possible "fat finger" trade is also swirling.

In Japan, the yen strengthened -- snapping its recent losing streak -- sending the Nikkei down 0.3%. Hong Kong's Hang Seng dropped 0.4%, and South Korea's Kospi gave back 0.6%. China's Shanghai Composite was closed as the Golden Week Holiday wraps up.

European markets are mostly lower at midday, as the pound's "flash crash" and Fed anxiety weighs on investor sentiment. France's CAC 40 and Germany's DAX were last seen down 0.4% apiece. However, London's FTSE 100 got a boost as sterling cooled, up 0.8%.

overseas stocks october 7

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