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Midday Market Update

Stocks Lower in Choppy Trading; Brexit, Fed Eyed

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U.S. Market    
Stocks headed lower again late this morning after briefly paring losses to trade higher. Investors were focused on Brexit and the upcoming Fed meeting.

New polls showing increasing support for a U.K. exit from the European Union rippled across financial markets today, sending the Pound lower and weighing on Asian and European stocks markets too.

At midday the Dow and S&P 500 were each down 0.3% while the Nasdaq fell 0.5%.

Stocks on the Move
 Microsoft (MSFT) announced this morning that the firm has entered into a definitive agreement to purchase wide-moat  LinkedIn (LNKD) in an all-cash deal valuing the company at $26.2 billion (or $196 per LinkedIn share), inclusive of cash acquired. Morningstar’s Rodney Nelson says that at first glance he doesn’t “view the deal as especially value destructive for Microsoft” given the opportunity to weaved LinkedIn growing user base into Office. Microsoft shares were off 2% at midday while LinkedIn shares soared 47%.

Foreign Markets
It was a tough start to the week for overseas markets. 

In Europe, the FTSE 100 was down 0.9% while the Paris CAC and Germany’s DAX each shed 1.5%.

Asian markets saw steeper declines. The Nikkei 225 plunged 3.5%, the Shanghai Composite was off 3.2% while the Hang Seng was 2.5% lower. 

Jeremy Glaser has a position in the following securities mentioned above: MSFT. Find out about Morningstar’s editorial policies.