UPDATE 2-UK quarantine moves, data knock European stocks lower

  • Reuters
  • Stock Market News
UPDATE 2-UK quarantine moves, data knock European stocks lower
Credit: © Reuters.

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

* China, U.S. retail sales data sap global mood

* STOXX 600 still records second week of gains

* All eyes on U.S. stimulus, U.S.-China trade talks

* Travel stocks lead European losses

(Updates to market close)

By Sruthi Shankar

Aug 14 (Reuters) - European shares slid in thin summer trading on Friday as travel stocks slumped after Britain added more countries to its quarantine list, while weak data from across the globe raised doubts over the pace of economic recovery from the coronavirus crisis.

The pan-European STOXX 600 index .STOXX fell 1.2%, with travel and leisure stocks .SXTP down 2.3% to lead sectoral losses.

UK-based airlines and tour operators TUI TUIGn.DE TUIT.L , Easyjet EZL.L , British Airways-owner IAG ICAG.L fell between 4.8% and 8.4% after the British government said it would impose a 14-day quarantine on arrivals from France, beginning on Saturday.

It also added the Netherlands, Malta and three other countries to the list. the second-most popular overseas destination after Spain for Britons, warned that it would reciprocate. Paris-listed shares .FCHI fell 1.6%, with Air France KLM AIRF.PA dropping 5.8%. 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," said Alastair George, head strategist at Edison Investment Research.

Global stock markets also headed lower after lacklustre retail sales numbers from the United States and China, while data confirmed that the euro zone suffered the biggest drop ever recorded in employment and gross domestic product in the second quarter. over upcoming U.S.-China trade talks amid souring diplomatic relations between the two countries and a lack of progress in negotiations over U.S. economic stimulus, a major factor that has pushed U.S. stocks near all-time highs, also weighed on the mood.

Despite Friday's pullback, the STOXX 600 recorded its second straight week of gains as huge quantities of stimulus coursing through the financial system and optimism over the development of a COVID-19 vaccine made investors buyers of equities.

"We do believe there's value in European equities," said Matthias Scheiber, global head of multi asset portfolio management at Wells Fargo (NYSE: WFC ) Asset Management.

"It will be a long road to full employment and we will see job losses. However, Europe has managed reasonably well with various fiscal and monetary schemes."

Among individual movers, German container shipping line Hapag-Lloyd HLAG.DE surged 13.3% as it nearly doubled net profit in the first half of 2020 and kept its full-year outlook intact. Entertainment ROVIO.HE , the maker of the 10-year-old "Angry Birds" mobile game series, rose 1.6% after reporting a 160% jump in second-quarter adjusted operating profit, helped by increased player engagement amid COVID-19 lockdowns.

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

Error: File type not supported

Drop an image here or


Related Articles