London Markets: Short-haul airlines and hotels slump in London on growing virus fears

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Airlines and hotels bore the brunt of selling in London trade on Monday as concerns about the coronavirus’s spread in South Korea and Italy roiled markets globally.

EasyJet EZJ, -15.05%  shares nosedived nearly 15%, PPHE Hotel Group PPH, -10.38%   fell 11% and Budapest-headquartered Wizz Air WIZZ, -10.37%  slumped 10%.

“At the early stage of the coronavirus story, long-haul carriers like International Consolidated IAG, -8.35%  and Lufthansa LHA, -8.22%  [felt] the pain on account of their routes to China, but now short-haul airlines are taking a beating too,” said David Madden, markets analyst at CMC Markets UK.

The British pound GBPUSD, -0.3859% traded just below the $1.29 level, while the yield on the 10-year gilt TMBMKGB-10Y, -9.46%  fall five basis points to 0.52%. Yields move in the opposite direction to prices.

The FTSE 100 UKX, -3.48%  dropped 3% to 7178.51, with all the major European stock markets also getting a hammering. The U.K. actually outperformed other markets, notably Italy I945, -5.15%  which fell close to 5%.

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