On Friday, a basket of European bourses had ebbed out in thin summer trading as travel and tourism stocks were hit with a heavy whiplash after UK had added more countries on its mandatory 14-day quarantine list upon arrival, while weak retail sales data from China alongside a lower-than-anticipated rise in US retail sales had raised doubts that the global economy might take a longer-than-anticipated timeframe to get back into a pre-pandemic level.
In point of fact, the UK Government of PM Boris Johnson’s latest move to add more countries on its compulsory quarantine list upon arrival had tuned up tone of a slew of European stock indices on a thin-volume trading Friday, while analysts were also quoted saying that an uncertain outlook over the pace of global economic recovery from the pandemic-led tattering had also been taking heavier toll on investors’ mind and had prodded them to sail through a profit-taking sell-off wave ahead of the weekend.
Travel stocks totter as UK add more countries into its quarantine list
Besides, as later last week the UK Govt. had added Malta, Netherlands and three other countries in to the obligatory quarantine list, the pan-European STOXX 600 shed 1.6 per cent with its travel and leisure index .SXTP dropping as much as 3.0 per cent, while the STOXX 600’s financials, energies and construction indexes fell more than 2 per cent over frets of a sharply deteriorating demand outlook.
Apart from that, among the aviation and tour operators, which have been the hardest hit in the global pandemic outbreak so far, a number of UK-based aviation industry giants such as TUI, Easyjet and British Airways-owner IAG had tumbled between 6 to 7 per cent.
Citing statistics, on Friday’s European market closure, shares had rounded off the day sharply lower, while London’s FTSE 100 had taken a header of 1.55 per cent to 6,090.04, French CAC 40 had jolted 1.58 per cent to 4,962.93 and Frankfurt’s DAX had dwindled 0.71 per cent to wrap up the day at 12,901.34.
Elsewhere in the Europe, Madrid’s benchmark IBEX 35 ended the day 1.33 per cent lower to 7,154.30, while Italy’s FTSE MIB had faltered as much as 1.13 per cent to wrap up the day at 20,028.11. Meanwhile, referring to an upscaled uncertainty whirling over the market atmosphere about possibilities of a pandemic resurgence in Europe what United States have been experiencing over the recent weeks, a head strategist at Edison Investment Research, Alastair George said, “What we have got is a significant amount of uncertainty over the evolution of coronavirus pandemic, which is maintaining a risk premium for the transportation, leisure and hospitality sectors. ”