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