MILAN: European shares slipped on Monday with travel stocks leading the declines after Britain imposed a two-week quarantine on travellers returning from Spain after a surge in coronavirus cases.
The pan-European STOXX 600 closed down 0.3%, extending declines after it recorded its first weekly fall in four on Friday.
Travel and leisure stocks dropped 3.4%, with UK-based airlines and tour operators such as TUI, Easyjet, British Airways-owner IAG falling between 6% and 11.3%.
The broader index sank to a two-month low, further cementing its status as the worst performer in Europe this year with a 40% loss.
Adding to the sector's woes, Ireland's Ryanair cut its annual passenger target by a quarter and warned a second wave of Covid-19 infections could lower that further.
Lufthansa and Air France dropped about 5% each after the British government said it was watching the situation in Germany and France closely.
Spanish stocks fell 1.7%, lagging its European peers, also hit by a weakness in banking shares.
French car parts group Faurecia fell 6.4% after saying that it expects to return to profit and cash generation in the second half of the year, helped by cost controls.
Ubi Banca fell 8.8%, while Intesa Sanpaolo slipped 0.8% after the expiry of a deadline for investors to buy Ubi Banca's shares and tender them in Intesa Sanpaolo's takeover offer, the day before the formal end of the offer.
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