Saturday, October 31

Main European indices fall, dragged down by the tourism sector

September 18, 2020 14:30

Main European indices fall, dragged down by the tourism sector

Concern about the worsening of the second wave of coronavirus in Europe and its impact on the tourism sector has turned the main European indices red, with the IBEX 35 leading the way. The Spanish index is about to lose 7,000 points, having dropped just over 1% in the first hours of trading, while the FTSE 100 lost half a percentage point.

Markets related to the tourism sector were affected most by the increasingly real possibility of a worsening of the pandemic situation, which may bring about new restrictive mobility measures.

The airline sector was especially impacted:

  • The Spanish-British airline IAG fell more than 7% this morning
  • Easyjet has fallen more than 5%
  • InterContinental Hotels Group has fallen around 4%.

These falls come after the World Tourism Organization (UNWTO) pointed out that the sector will not return to pre-pandemic levels for three to four years.

In the losses of the IBEX 35, the falls in the banking sector also have great weight:

  • Bankia shares fell almost 2% this morning
  • BBVA fell more than 2%
  • Banco Santander has fallen almost 2%
  • Only Caixabank has remained in the green with a slight rise of 0.73%.

This comes after Caixabank and Bankia agreed to a merger to create the first financial entity in Spain in a number of assets.

IBEX 35 weekly chart

Source: Admiral Markets MetaTrader 5. IBEX 35 weekly chart. Data range: June 8, 2014, to September 18, 2020. Prepared on September 18, 2020, at 10.30 am. Keep in mind that past returns do not guarantee future returns.

On the other hand, today the markets will be paying attention to the Quadruple Hour Witch, the penultimate one of the year.

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