July 2, 2022

Travel Sector Stocks Hit by Escalating Terror Fears

Travel Sector Stocks Hit by Escalating Terror Fears; Heightened terror fears battered tourism sector stocks Tuesday, with airlines especially affected after Washington issued a travel warning and Turkey shot down a Russian warplane.

Shares in airlines as well as in travel and hotel groups slid after the US issued a worldwide travel alert for its citizens on Monday.
Russia meanwhile confirmed that a warplane shot down by Turkey on the Syrian border was one of its fighter jets but insisted the plane had not violated Turkish airspace.
In Britain, budget airline Easyjet announced it had canceled all flights to and from the Egyptian resort of Sharm el-Sheikh until next year over security concerns raised by the downing of a Russian airliner in Egypt last month. Russia last week said the plane was blown up in a “terrorist attack.”
Brussels will meanwhile stay at the highest security threat level for another week over fears of an imminent terror attack, the Belgian government said.
“The heightened geopolitical threat from the Russian jet being downed by Turkey, while Brussels remains in lockdown, is sending people into safe havens like the yen and gold and out of travel-sensitive stocks,” said Jasper Lawler, an analyst with traders CMC Markets.
“The rebound in the oil price is also a negative for fuel prices for airlines,” he said.
At around 1430 GMT, London’s benchmark FTSE 100 index was down nearly 1.0 percent.
Frankfurt’s DAX 30 and the CAC 40 in Paris both dropped nearly 2.0 percent compared with Monday’s close.
In New York, US shares opened sharply lower Tuesday following Europe’s stock slide on the downing of a Russian jet by Turkish forces.
In foreign exchange, the euro stood at $1.0658 as it extended its recovery from seven-month lows of under $1.06 on Monday.
Tuesday’s developments sent shares sliding in afternoon trades. In London, Easyjet slumped 3.04 percent and British Airways’ parent IAG lost 4.88 percent.
Elsewhere Tuesday, shares in German airline Lufthansa shed 3.53 percent and in Paris, French hotels group Accor sank by 6.88 percent in value compared with Monday’s close.l

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