Stock markets shrug off Paris attacks as travel stocks fall

Stock markets shrug off Paris attacks as travel stocks fall

Stock markets shrug off Paris attacks as travel stocks fall

Written by Staff Writer

17 Nov, 2015 | 10:45 am

Shares in Europe’s travel and tourism companies suffered heavy falls on Monday() as investors worried about the impact of the Paris attacks.

Airlines were among the big fallers, with Air France and British Airways owner IAG down 5% and 3% respectively. French hotel group Accor lost 5%.

Stock markets in the US, London and Frankfurt all closed up after recovering from early falls.

But in Paris the Cac 40 index finished down 0.08%.

The price of gold rose 1% as investors sought the safety of traditional havens.

On Wall Street, all of the three main indexes eventually ended the day over 1% higher.

Many analysts had forecast that travel and leisure shares would be the big losers on Monday as markets got their first chance to react to Friday’s attacks.

Eurotunnel Group, operator of the Channel Tunnel rail link, fell 3%. Aeroports de Paris, the operator of Paris’ Charles de Gaulle and Orly airports, was almost 4% lower, while LVMH and Gucci-owner Kering fell nearly 1%.

Budget airline Easyjet fell about 3% in early trading, but closed 0.39% down. Ryanair also fell around 3% in the morning, and closed 1.43% lower.

Its important to note that the tourism sector accounts for about 7.5% of French GDP.

A decline in tourism in Europe could also weaken the euro, analysts warned. But the currency held relatively steady on Monday, and was up 0.019% against the dollar and down 0.55% against sterling.

French air strikes against IS bases in Syria led to concerns about oil supplies. The price of Brent crude was down 2% to $43.59 a barrel.

But many analysts believe the wider economic impact of the Paris shootings will be short-lived.

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