Published: August 14, 2020 at 5:27 am ET
European stocks plunged on Friday, as Britain’s move to put France on its quarantine list hit travel stocks and disappointing Chinese economic data.
Continued delays and fears of a new US stimulus are also weighing on sentiment, and investors are heading to a meeting between US and Chinese officials to discuss the trade deal. on Saturday.
Pan-European Stoxx 600
The index fell 1.8% at the beginning of the session, while the CAC of France
2.2% reduction and Germany̵7;s DAX
1.4% lower. UK FTSE 100
decreased by 2.4%, led by the group of airlines and hotels. US stock futures
also lower pointed.
The UK decided to add France and the Netherlands to its quarantine list amid increasing cases of coronavirus infection affecting tourism and leisure supplies. From Saturday, visitors to the UK from those countries will have to quarantine themselves for 14 days. The latest blow to the travel sector left airlines badly at the beginning of Friday, with easyJet
IAG is the owner of British Airways
all acrobatics. Travel operator Tui
booked for Monday at a substantial loss following disappointing earnings Thursday.
Not only airlines feel the impact of a decision likely to lead to flight cancellations and delays, like hotel chain Whitbread
and aircraft engine manufacturer Rolls-Royce
is also one of the sharpest flinchers.
China’s retail sales unexpectedly fell 1.1% in July, improving from June’s 1.8% drop but marking the seventh consecutive monthly decline. Economists estimate revenue will increase 0.1% but the sudden drop has raised concerns about China’s economic recovery. However, industrial production continued to grow, rising 4.8% in July from the same period last year, matching a 4.8% increase in June, but lack of FactSet consensus on 5 growth. ,first%.
“China entered the coronavirus crisis for the first time and is believed to be one of the first to step out of its early stages, so the fragile nature of its recovery gives a glimpse into it. comfort in the future for other countries, ”said AJ Bell investment director Russ Mold.
shares fell, after owners of Mercedes-Benz said they had agreed to a $ 2.2 billion settlement to resolve civil investigations by the US administration and class action lawsuits related to the matter. diesel engine exhaust.