EUROPE MARKETS: European Stocks Sell Off After Deadly Terrorist Attack In Barcelona
18 Agosto 2017 - 1:36PM
Dow Jones News
By Sara Sjolin, MarketWatch , Carla Mozee
U.S. political worries also pressuring European stocks
Spanish stocks slumped Friday, as part of a wider selloff across
European markets a day after terrorists killed at least 13 people
in the heart of Barcelona.
More than 100 people were injured in Spain's second-largest city
(http://www.marketwatch.com/story/islamic-state-takes-credit-for-deadly-barcelona-attack-on-pedestrians-2017-08-17)
in a late Thursday afternoon attack claimed by Islamic State, and
the death toll could rise, officials said. Hours later, police
killed five alleged terrorists as they responded to a separate
attack that hurt seven people in Cambrils, a town southwest of
Barcelona, the Catalan government said.
In Madrid, the IBEX 35 dropped 0.6% to close at 10,385.70, and
had fallen by as much as 1.7% in early trade. The Stoxx Europe 600
index fell 0.7% to end at 374.20, trimming its weekly gain to
0.6%.
"Airlines bore the brunt of a risk-off turn on the open," said
ETX Capital's senior market analyst Neil Wilson in a note. "As
we've seen over the last couple of years in Europe, these kinds of
atrocities affect tourism and will hit airline earnings. Investors
are concerned that demand will fall over the rest of the year,
which was already looking like it would be a tough patch for the
industry."
Shares of Air France-KLM SA (AF.FR) dropped 1.6%, Ryanair
Holdings PLC (RYAAY) gave up 2%, International Consolidated
Airlines Group SA (IAG.LN) (IAG.LN), which runs British Airways,
fell 2%, and easyJet PLC (EZJ.LN) lost 0.9%.
Read:Airlines slump after Barcelona attack, but here's why you
should bet they'll recover
(http://www.marketwatch.com/story/airlines-slump-after-barcelona-attack-but-heres-why-you-should-bet-theyll-recover-2017-08-18)
On the IBEX 35, Melia Hotels International SA (MEL.MC) gave up
2% and supermarket chain Distribuidora Internacional de
Alimentacion SA (DIA.MC) dropped 2.6%.
Other movers: Shares of Royal Vopak NV (VPK.AE) tumbled 9.1%
after the tank-storage terminal operator issued a warning on full
year profits.
Stada Arzneimittel AG (SAZ.XE) soared 13% after news that Bain
Capital LLC and Cinven Group Ltd. has won over enough shareholders
to proceed with their takeover of the German drugmaker.
White House drama: European stocks were also under pressure
following reports out late Thursday that White House economic
adviser Gary Cohn would leave his role, and deal a blow to U.S.
President Donald Trump's plan for a tax-code overhaul. The White
House said Thursday that Cohn is staying, but Cohn was reportedly
upset by Trump's response to last weekend's deadly white
supremacist rally in Charlottesville, Va.
"Markets had originally given President Trump the benefit of the
doubt and hoped his abrasive style would cut through the political
web and get things done. However, far from being a force for
change, seven months into his presidency there has been no
noticeable policy success and U.S. politics is more divided than
ever," said Rebecca O'Keeffe, head of investment at Interactive
Investor, in a note.
"Dissolving his infrastructure council before it even began
highlights just how volatile the situation is and the question for
investors is changing from what support Trump may deliver to
markets to what risk he brings," she said.
Indexes: France's CAC 40 index fell 0.6% to 5,114.15 and
Germany's DAX 30 index fell 0.3% to 12,165.19. The U.K.'s FTSE 100
index dropped 0.9% to 7,323.98.
The euro bought $1.1747, up from $1.1725 late Thursday in New
York.
(END) Dow Jones Newswires
August 18, 2017 12:21 ET (16:21 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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