European, Asian Media Stocks Hit by Global Selloff
Sony, ITV and Italy's Mediaset were among the sector stocks that underperformed the broader markets.
Global stock markets dropped on Monday, with entertainment industry stocks in Europe and Asia being dragged down in the process, while U.S. sector stocks opened mixed.
Observers cited concerns that central banks around the world may not do as much as previously hoped to stimulate economic growth as a key driver of Monday's declines, which ended calmer trading trends over the summer.
Futures had pointed to an opening drop for the broad-based S&P 500 after U.S. markets had on Friday posted their worst day since June 24, when the U.K. voted in favor of leaving the European Union, amid fears that U.S. interest rates could be raised.
Just after markets opened on Monday, the S&P 500 was down only 0.3 percent though, and it later was down only slightly. Big Hollywood players also started the day lower. Sony Corp. American depositary shares as of 9:40 a.m. ET was down 0.6 percent, CBS Corp. shares were down 0.4 percent, Comcast's stock was off 0.4 percent, Viacom's stock down 0.2 percent, Time Warner's stock off 0.2 percent and Walt Disney shares down 0.1 percent. 21st Century Fox shares were up 0.3 percent.
One observer said that because of Friday's U.S. drop, stocks in international markets seemed weaker on Monday than U.S. stocks.
In Europe, drops were more pronounced. The broad-based Stoxx Europe 600 index was down 1.6 percent as of 2:30 p.m. London time, while the FTSE 100 in London was down 1.6 percent. The stock of U.K. TV giant ITV was down 3.1 percent at that time, losing more than the broader indices, while shares of pan-European pay TV giant Sky were down 1.5 percent. In France, Vivendi's stock dropped 1.3 percent, while Italy's Mediaset saw its shares decline 2.8 percent.
Asian markets closed down sharply, with the Hong Kong exchange down 3.3 percent, Shanghai down 1.9 percent and Tokyo losing 1.7 percent. Sony Corp.'s stock in Japan ended the day down 3.0 percent.