EU Stocks Down On Terror Attacks

eu-stocks-down

European stocks which were down as early as Wednesday this week due to the ongoing geopolitical concerns between the United States and North Korea declined once again on Friday following news of terror attacks in Barcelona Spain where around thirteen people were reportedly killed.

Despite a weak trading session during the week, European stocks recorded a three-day high before being dampened by various market concerns on Friday. The Stoxx Europe 600 index was down by 0.6% to 346.87. The Stoxx Europe 600 Bank Index which led most of the losses inched down by 1.7% which is the index’s biggest one day decline since May due to a weak interest rate hike outlook. Deutsche Bank was among the biggest losers after falling 3.2%.

One of these factors includes a weak outlook of another interest rate hike from the U.S. Federal Reserve later this year which was evident at the released minutes of the July meeting from the Fed. The meeting minutes revealed that the Fed officials are currently concerned with the inflation rate. The euro was also down due to the minutes of the European Central Bank meeting held last month.

The market’s hope for a slowdown in the European Central Bank’s assertive monetary stimulus policies as the inflation and growth of the euro zone recovered during the beginning of the year was dampened following the release of the meeting minutes.

The DAX 30 index was down by 0.5% to 12,203.46 while the CAC 40 index in France declined by 0.6% to 5,146.85. The IBEX Index from Spain was down by 1% to 10,443.80 after news of a terrorist attack in Barcelona broke out. The IBEX 35 in Madrid closed 1.5% lower to 10,327 and has lost around 1.7% during the early trading session. The FTSE 100 index from the United Kingdom also lost 0.9% o 7,322.85.

Travel stocks were mostly affected by the tragic news which made investors believe in a decline from people to traveling following the recent events. European stocks have been known to be susceptible to news terror attacks in the past couple of years.

Shares of easyJet were down by as much as 2.69% ti 1,266 from having previously traded at around the 1,300 level. Shares of British Airways and Iberia Air from Spain also lost around 2% each.  Air France KLM SA shares lost 2.9% while Ryanair Holdings PLC fell by 2.6%. Shares of International Consolidated Airlines were down by 2.4% while Deutsche Lufthansa was down by 1.7%.

Asian stocks were also down with Japan’s Topix inching down by 1.1% and Australia’s S&P 500 Index closing 0.6%. The Kospi and Hang Seng Index was also down by 0.1% and 0.6% respectively.

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