Travel actions take Europe lower on virus concerns
European stocks fell and travel stocks hit their February low on Monday, fearing the fast-spreading Delta variant would dampen travel demand and slow the ongoing global economic recovery.
The pan-European STOXX 600 index fell 1.2%, hitting its lowest level in almost two weeks. The German DAX lost 1.1% and the French CAC 40 lost 1.3%. The UK’s FTSE 100 fell 1.2% as the increase in virus cases overshadowed optimism about England reopening.
“The increase in the number of Delta variant cases may spread outside of Asia and the risk now appears to lean towards delaying the relaxation of restrictions in many regions, hence the slowdown in growth,” said Peel Hunt analyst Ian Williams in a morning note. . The travel and leisure index in Europe fell 2.9% to its lowest level since mid-February. The British government announced on Friday that it was reversing a planned relaxation of COVID-19 quarantine rules for travelers from France.
UK-listed shares of cruise line Carnival Plc, airlines EasyJet and British Airways owner IAG fell between 4% and 6.7%. In Britain, cases rose to 48,161 on Sunday and in France, a minister said the reimposition of curfew measures could not be ruled out if infections continued to climb.
Oil majors like BP and Royal Dutch Shell fell more than 1.5%, hit by falling crude prices after OPEC + ministers agreed to increase supply from August. With government bond yields falling, other economically sensitive sectors such as mining, autos and parts and banking fell, as the increase in virus cases raised the prospect. a slower recovery.
French media giant Vivendi fell 0.8% after billionaire investor Bill Ackman decided to buy up to 10% of Vivendi’s Universal Music group through its main hedge fund, rather than a company of ad hoc acquisition. Italian telecommunications group Telecom Italia fell 2.2% after forecasting lower organic organic profit this year from an earlier forecast of stable to low single-digit growth.
British video game company Sumo Group climbed 42.2% after Chinese tech giant Tencent Holdings agreed to buy the company in a deal valued at £ 919m (£ 1.27bn). dollars).
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