UPDATE 2- UK stocks slide as quarantine rules hit travel stocks, data disappoints

  • Reuters
  • Stock Market News
UPDATE 2- UK stocks slide as quarantine rules hit travel stocks, data disappoints
Credit: © Reuters.

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

* BA-owner, easyJet slump as UK quarantines travellers from France

* Disappointing China, U.S. retail sales dents recovery optimism

* UK benchmarks set for second week of gains on stimulus bets

* UK resumes lockdown easing; stiffens punishment on rule breaches

* FTSE 100 down 1.6%, FTSE 250 off 1.1% (Updates to close)

By Sagarika Jaisinghani and Susan Mathew

Aug 14 (Reuters) - London-listed shares fell on Friday as travel stocks tumbled after Britain imposed new quarantine measures on travellers from France and other countries, while disappointing data from around the world raised worries of a delayed global economic rebound.

The blue-chip FTSE 100 .FTSE fell 1.6% and the mid-cap FTSE 250 .FTMC lost 1.1%, with the travel index .FTNMX5750 marking its sharpest loss in two weeks as France warned that it would reciprocate. Airways owner International Consolidated Airlines ICAG.L , budget carrier easyJet EZJ.L and the London shares of tourism company TUI TUIT.L lost between 4.8% and 8.4%. comes just as the travel and tourism sector was starting to get back on its feet after being decimated by the (novel coronavirus) pandemic," said Craig Erlam, senior market analyst, UK & EMEA at OANDA.

Any reciprocation would mean that UK businesses that rely on tourists from France and others in the list such as the Netherlands and Malta, will also suffer, he said.

UK Prime Minister Boris Johnson resumed Britain's lockdown easing but stiffened punishments for rule breaches including increasing fines for repeatedly refusing to wear face masks, and cautioned he would halt the easing again if needed. in London indexes were broad-based as falling crude prices weighed on oil majors .FTNMX0530 , while a strong pound hurt internationally focused firms on the FTSE 100. O/R GBP/

Global sentiment, meanwhile, took a hit as an unexpected slip in China retails sales was followed by U.S. retails sales rising less than expected in July. In the euro zone, data confirmed the bloc suffered the biggest drop ever recorded in employment and gross domestic product in the second quarter. MKTS/GLOB

But, the FTSE 100 logged its second straight weekly gain, up 1%, as growing evidence of the pandemic's economic and corporate damage brews optimism around more stimulus.

Citigroup (NYSE: C ) analysts said they expected dividends issued by UK firms to drop 50% this year, although miners could outperform if commodity prices showed resilience in the second half.

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search