Global Stocks Slide Amid Brexit Jitters
TOKYO (AP) --- Global stock markets and the pound turned lower on Tuesday amid more concerns about the fallout from Britain's decision to leave the European Union.
KEEPING SCORE: France's CAC 40 fell 1.6 percent to 4,168 and Germany's DAX dropped 1.5 percent to 9,562. Britain's FTSE 100 lost a more moderate 0.2 percent to 6,512, but the pound dropped a heavy 1.1 percent to $1.3150, its lowest since the vote to leave the EU. U.S. shares were set to drift lower after the long holiday weekend, with Dow futures slipping 0.5 percent and S&P 500 futures down 0.6 percent.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
UK JITTERS: The renewed concerns over Britain were triggered by a report that a financial services company had to suspend one of its property investment funds after investors were rushing to pull money out. That saw a sharp drop in real estate stocks in Britain and reawakened concerns that the exit from the EU could destabilize the country's financial system or economy. The Bank of England later said it had eased bank rules to allow them to lend up to 150 billion pounds ($200 billion) more to households and businesses.
EUROPE ECONOMY: A survey showed that business activity in the eurozone slowed to a 17-month low in June, before the British vote to leave the EU. The so-called purchasing managers' index published by financial information company Markit, a broad gauge of business activity, fell to 52.8 points from 53.3 the month before. Economists say the drop reflects some business uncertainty ahead of the U.K. vote, but is also likely to drop in coming months as a result of the vote's outcome.
ASIA'S DAY: Earlier, Japan's benchmark Nikkei 225 slipped 0.7 percent to finish at 15,669.33, while South Korea's Kospi fell 0.3 percent to 1,989.85. Hong Kong's Hang Seng dipped 1.4 percent to 20,759.64, and the Shanghai Composite added 0.6 percent to 3,006.39.
ENERGY: Benchmark U.S. crude dropped $1.32 to $47.67 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, fell $1.13 to $48.97 in London.
CURRENCY: The dollar edged down to 101.66 yen from 102.51 yen late Monday in Asia. The euro rose slightly to $1.1151 from $1.1146.
(KA)