US open: Stocks fall amid Brexit worries
Updated : 16:03
US stocks fell on Friday, reversing the previous day’s gains, as investors showed risk-aversion ahead of Britain’s European Union referendum next week.
At 1546 BST the Dow Jones Industrial Average fell 0.35%, the S&P 500 dropped 0.38% and the Nasdaq declined 0.38%.
In Europe, the main indices were all over 1% higher as both sides of the referendum debate suspended campaigning until Saturday at the earliest following the murder of a British MP on Thursday.
Labour MP Jo Cox was shot and stabbed in her constituency town of Birstall near Leeds, allegedly by local resident Tommy Mair, who is reported to have shouted “Britain First” as he attacked her. There was a sense among market participants on Friday that the incident could sway public opinion back towards a Remain vote.
“One of the triggers for the change in market sentiment appears to be the suspension of Brexit campaigns following tragic killing of MP Jo Cox. The suspension of campaigns just means Brexit can temporarily move to the sidelines,” said Lawler.
“The killer is reported to have said ‘Britain First’ before shooting the MP, who was a strong believer in Britain remaining in the European Union. If true, it could tarnish the image of pro-Brexit supporters.”
On the economic data front, US housing starts fell a little less than expected in May, according to the Commerce Department. Housing starts slipped 0.3% to a seasonally-adjusted annual rate of 1.16m versus expectations of a decline to 1.15m.
Meanwhile, oil prices recovered, with West Texas Intermediate up 2.7% at $47.51 a barrel and Brent crude up 3.0% to $48.68.
In corporate news, Apple shares declined following reports that Beijing’s Intellectual Property Office ruled that the iPhone 6 and 6S models are similar to Shenzhen Baili's 100C phone. This could lead to iPhone sales being halted in Beijing.
Microsoft nudged lower following news it was partnering with a cannabis industry software company.
Cosmetics giant Revlon gained after saying late on Thursday that it had agreed to buy Elizabeth Arden for $14 per share in cash, representing an enterprise value of around $870m.