Stocks Hit on Tuesday as Asian Markets FallCristina Cantor (Author) Published Date : Feb 10, 2016 00:47 ET
European shares lost their early gains with bank shares falling and losses in markets in Asia sent many investors looking for safe havens.
The FTSEEurofirst 300, a pan-European exchange dropped by 0.1% and then it actually came back to level, after touching its lowest since October 2014 and still not near the lowest since 2013.
The index begin the day in the black, but bank stocks started to retreated and reversed the earlier gains. The STOXX Europe 650 said that 600 banks were lower by 1.6 percentage points,
Several banks in Italy were suspended for their trading after they dropped sharply.
A search for safe shelter pushed the Japanese yen up, long considered one of the safe haven assets. That drove the yield on the safe haven assets into the red for the very first time ever.
However, some signs that stabilization would return could be seen. Deutsche Bank was up 1.2%, after dropping by 9.5% Monday.
Late in the day on Monday, the German bank announced it had sufficient reserves to make the payments due this year on the AT1 securities after the concern mounted about the ability to maintain its bond payments.
Other sectors that are growth sensitive, such as basic resources were under great pressure although the majority of commodities were higher.
U.S. crude rose by 2.3%, while Brent crude was up by more than 1%. Copper was higher with top Asian consumers on their holiday.
Gold was able to benefit from the worry of risk edging up and readying for its eighth consecutive day of increases, which would be its longest run in 5 years.
Asia saw the worst losses on the day following suit with the declines in Europe and U.S. stock Monday.
Taro Aso the Finance Minister in Japan warned that the yen s rise was rough, which was something of an understatement when the Nikkei plunged 5.4%.
Stocks Hit on Tuesday as Asian Markets Fall