British Airways parent IAG and easyJet's stocks slump
Blue-chip stocks in the U.K. dropped Friday, setting to wrap up the week with a fall in travel-related stocks after terrorists launched attacks in Spain.
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The FTSE 100 fell 0.7% to 7,339.48, led by declines among consumer goods and services shares. The index was facing a second consecutive loss, but was still on course for a modest weekly rise of 0.4%.
Equities across Europe slumped after at least 13 people (http://www.marketwatch.com/story/islamic-state-takes-credit-for-deadly-barcelona-attack-on-pedestrians-2017-08-17) were killed Thursday when a van mowed down pedestrians on Barcelona's popular Las Ramblas thoroughfare. More than 100 other people were injured 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 Spanish town southwest of Barcelona.
Travel shares were pushed lower. EasyJet PLC (EZJ.LN) dropped 2.4% as did shares of International Consolidated Airlines Group SA (IAG.LN) , which runs British Airways. Stock in InterContinental Hotels Group PLC (IHG) lost 1.5%. Travel-services provider TUI AG moved down 0.4% and cruise-ship operator Carnival PLC (CCL.LN) was off 1.2%.
"The terrorist attack in Spain reminded everyone that ISIS is still active. Investors turned towards the safety of the yen and gold again, while the dollar scored gains versus the risk-on commodity currencies," said Konstantinos Anthis, a research at ADS Securities.
Shares of gold producer Randgold Resources Ltd. (RRS.LN) gained 1%, just one of five FTSE 100 components that moved higher early Friday.
U.K., European and Asian stocks (http://www.marketwatch.com/story/nikkei-slumps-to-3-month-low-as-asian-markets-dip-2017-08-17) were also swept lower following Wall Street's selloff (http://www.marketwatch.com/story/dow-looks-set-to-break-4-day-win-streak-as-fed-minutes-sink-in-2017-08-17) on Thursday. Investors are concerned the Trump administration won't be able to push through his business-friendly reforms after a number of Corporate America's leaders ditched U.S. President Donald Trump's advisory councils in reactions to his response this week to the deadly violence at a white supremacist rally in Charlotesville, Va.
The pound bought $1.2892 compared with $1.2868 late Thursday in New York.
(END) Dow Jones Newswires
August 18, 2017 04:20 ET (08:20 GMT)