Published on : Saturday, August 19, 2017
The terror attack in Spain shook the European tourism markets, making the airlines, hotel and travel agency dragging down amidst the fear of a pending drop in the number of tourists across the continent.
The investor jitters dragged on London’s blue chip index, which slid 0.86 percent or 63.89 points to7,323.98.
David Madden, a market analyst at CMC Markets commented that the tragic event in Barcelona has shaken the tourist-related stocks. The stock markets of the airlines and the cruises fell down. But the cruise tourism in Barcelona is trying hard to lure the tourists to go ahead.
When the terror attack happen, the tourism companies and the other related industry leaders wonder that there will be a negative impact on tourism, and companies in the travel and leisure sector feel under the pressure for the lowering down of the stock price and the cancellation from the tourists.
British Airways owner IAG was among the worst-performing stocks, down 12.5p to 611.5p while travel agency TUI dropped 9p to 1,325p and low-cost carrier easyJet fell 11p to 1,290p.
The tragedy on Barcelona also had a deep impacted the share price of InterContinental FHotels Group, which fell 64p to 3,924p.
Merlin Entertainments was banged down 3.9p to 460.5p, amid fears of a slowdown in visitors to some of the company’s main tourist attractions including Alton Towers and the London Eye.
The continental carriers were dragging down their respective European index, which is leaving the French CAC 40 down 0.64 per cent, the German Dax down 0.31 per cent and Spain’s IBEX down 0.56 per cent.
The FTSE 250 stocks were hit by the sell-off, with Thomas Cook fell down 0.6p at 124.2p and Wizz Air by falling 16p to 2,850p.
The second-tier index was ended the day lower by 146.62 points at 19,626.46. In currency markets, the pound fell nearly 0.2 per cent versus the US dollar to 1.284, and 0.3 per cent versus the Euro to 1.093.
The stock data released by the Food and Drink Federation on Friday showed the slump which has caused the food and drink trade of Britain deficit to balloon in the first half of the year, despite salmon and whisky sales helping exports touch a record high of £10.2bn.
The Brent crude prices jumped 2.5 per cent to $52.80 (£41) per barrel as the commodity continued to recuperate from a sell-off earlier this week on the back of Energy Information Administration data which showed a rise in US production and gas stockpiles.