Europe Stocks Fall After Two Days of Gains

European stocks fell early Thursday, following a two-day bounceback in risk assets around the world.

The Stoxx Europe 600 was down 0.9% in early trade after posting its largest two-day gain since February.

The banking sector led losses, down 1.6%. The U.S. banking units of Deutsche Bank AG and Banco Santander SA failed the Federal Reserve's annual stress tests, while the International Monetary Fund Wednesday named Deutsche Bank as the riskiest financial institution in the world as the potential to be the source of external shocks to the financial system.

Earlier, stocks in Japan and Shanghai closed little changed, while Hong Kong's Hang Seng Index added 1.4%. Australia's S&P ASX 200 rose 1.8%, led by energy and mining shares.

Thursday's moves followed two days of steep gains on Wall Street and around the world, as stocks rebounded from major losses in the aftermath of the U.K.'s surprise vote to exit the European Union.

The pound was flat against the dollar at $1.3436.

In commodities, Brent crude oil fell 0.7% to $50.95 a barrel after oil prices posted their biggest gain in over two months. Gold was down 0.7% at $1,317 an ounce.

Write to Riva Gold at [e-mail]

(END) Dow Jones Newswires

June 30, 2016 04:25 ET (08:25 GMT)

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