U.S., European Media Stocks Slide as Brexit Blues Continues
The pound continued to drop on Monday, and U.S. stocks also looked to open lower.
U.S. and European stock markets fell again on Monday following more major Friday declines after the results of the U.K.'s vote in favor of an exit from the EU, or Brexit.
In the U.S, the broad-based S&P 500 was down 1.1 percent in early Monday trading, and the Dow fell 1.2 percent. On Friday, they had fallen 3.6 percent and 3.4 percent, respectively.
Viacom's stock fell 2.0 percent in early Monday trading after closing Friday's session down 5.8 percent; Sony Corp. lost 1.9 percent (compared with Friday's 4.8 percent); CBS Corp. traded down 1.8 percent (3.8 percent); Time Warner 1.8 percent (3.2 percent on Friday); and 21st Century Fox shares lost 1.6 percent (7.7 percent).
Lionsgate's stock dropped 1.2 percent on Monday morning; Walt Disney was off 0.8 percent (after Friday's 3.3 percent drop); Discovery Communications 0.7 percent (versus 7.2 percent); and Comcast's stock was down 0.4 percent early on Monday (2.1 percent).
The FTSE 100 in London was down 2.0 percent in London afternoon trading just before the U.S. markets opened, while German stock index Dax was 1.9 percent lower and France's CAC dropped 2.1 percent. The broad-based Stoxx 600 index of European stocks was down 3.2 percent then.
The pound also continued to drop on Monday, down 3.3 percent as of early afternoon in London.
Among European entertainment stocks, U.K. TV powerhouse ITV saw its shares down 9.2 percent at $2.09 (1.584 pounds) just before the start of the U.S. trading day after a 20 percent drop on Friday when it hit a multiyear low of 1.41 pounds. The stock of pan-European pay TV giant Sky was down 4.1 percent on Monday afternoon, producer-distributor Entertainment One down 5.0 percent and studio facilities operator Pinewood down 1.9 percent.
Italy's Mediaset was, meanwhile, down 6.8 percent, German TV giant ProSiebenSat.1 fell 2.4 percent and France's Vivendi saw its stock down 1.6 percent Monday afternoon. The three stocks were close to their 52-week lows.
Liberum Capital analyst Ian Whittaker on Monday reiterated his price target of $5.03 (3.75 pounds) and “buy” recommendation on ITV's stock, calling it his "top buy." He told investors to "take advantage" of the Brexit-related stock price fall.