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Close Update: Global Stocks Capsize After UK Votes to Leave European Union


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U.S. stocks took a shellacking on Friday after the historic UK referendum to leave the European Union triggered a feeding frenzy across global financial markets and chased investors into the safety of gold and the Japanese yen. Although Europe was hardest hit, the Nikkei hemorrhaged by 8% while the Euro Stoxx 50 fell by nearly 9%.

There was a sea of red across Wall Street as well with every sector of the S&P 500 negative, especially financial stocks, which bore the brunt of Friday's selling. Even defensive sectors like utilities and telecoms were lower with U.S. Treasury yields falling by close to 2 basis points.

The surprise events in the UK and global fallout eclipsed Friday's bearish U.S. economic data. May durable goods orders were down 2.2%, missing estimates for a more modest decline of 0.7%. Excluding transportation orders, durable goods orders fell 0.3% versus the consensus estimate to remain unchanged.

Additionally, consumer sentiment deteriorated slightly as the index from the University of Michigan fell to 93.5 from 94.3, missing the estimated 94.0.

Here's where the markets stand at the close:

US MARKETS

Dow Jones Industrial Index was down 611.21 points (-3.39%)

S&P 500 was down 76.02 points (-3.60%)

Nasdaq Composite Index was down was down 202.06 points (-4.12%)

GLOBAL SENTIMENT

FTSE 100 was down 3.15%

Nikkei 225 was down 7.92%

Hang Seng Index was up down 2.92%

Shanghai China Composite Index was down 1.30%

UPSIDE MOVERS

(+) SKUL (+23.08%) To be acquired by Incipio for $5.75 per share

(+) FINL (+21.80%) Fiscal Q1 tops estimates

(+) EMES (+13.47%) Sells fuels business units to SU for $178.5 million

(+) STAF (+10.53%) Increases FY sales estimates 28% to $165 million

DOWNSIDE MOVERS

(-) LGY (-2.27%), SAN (-20.21%), UBS (-13.35%) EU banks tumble in wake of UK referendum to leave European Union

(-) PBR (-6.52%) Discloses $6.8 billion pension plan deficit

(-) RYAAY (-4.35%) Boosts buyback plan by EUR100 million, shares slump on Brexit vote

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Investing , Stocks



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