Thursday, 6 December 2018

European and Asian stocks fall, Brexit "a factor"

Markets fell on Wednesday.

The STOXX Europe 600 fell 1.2 percent, the Nikkei 225 fell 0.5 percent and the Shanghai Composite fell 0.6 percent. The US stock market was closed.

While some of the declines in Europe and Asia were reactions to the sharp decline in the US on Tuesday, some investors would also have been concerned with the developments in the UK, where Prime Minister Theresa May suffered embarrassing defeats on Tuesday at the start of five days of parliamentary debate over her plans to leave the European Union.

Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management, said that while the US economy "is likely to be able to withstand another rate hike or two", the economic outlook is "murkier than before", with Brexit also "a factor in the ongoing risk aversion".

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