Published: 14 August 2020 at 5:27 am ET
European stocks fell sharply on Friday as the UK move to add France to its quarantine list blocked travel reserves and Chinese economic data were disappointed.
Persistent delays and worries about a new round of US stimulus also weighed on the sentiment, and investors were awaiting a meeting of US and Chinese officials to discuss their trade deal on Saturday.
Stoxx pan-European 600
the index fell to 1.8% in early trading, while the French CAC
slipped 2.2%, and the German DAX
was 1.4% lower. FTSE 100 UK
slipped 2.4%, driven below by airlines and hotels. The future of stocks in the US
also showed lower.
The UK decision to add France and the Netherlands to its quarantine list amid rising coronavirus cases hit travel and leisure stocks. From Saturday, travelers coming to the UK from those countries will be required to be isolated for 14 days. The latest blow to the travel sector saw airlines suffer heavy losses on Friday, with easyJet
Owner of British Airways IAG
it all falls. Tour operator Tui
was set for a second day of significant losses after disappointing gains Thursday.
It was not just the airlines feeling the effects of a decision that is likely to lead to canceled flights and delayed vacations, like Whitbread hotel chains
and Rolls-Royce aircraft engine manufacturer
were also among the sharpest deceivers.
Chinese retail sales fell sharply 1.1% in July, improving to a 1.8% decline in June, but marking a seventh consecutive monthly decline. Economists had estimated that sales would be over 0.1% higher, but the sudden decline raised fears about China’s economic recovery. Industrial output continued to grow, however, rising 4.8% in July compared to a year earlier, matching the 4.8% jump in June but losing the FactSet consensus for a 5.1% increase.
“China was the first in the coronavirus crisis and certainly one of the first to emerge in its first phase, so the fragile nature of its recovery offers an unpleasant picture of the future for other countries,” the director said. of investment AJ Bell Russ Mold.
Stocks in focus
shares fell after the Mercedes-Benz owner said he had agreed to a $ 2.2 billion deal to settle civil investigations by U.S. authorities and class action lawsuits over diesel emissions issues.