Sunday, 27 Sep 2020

Travel stocks drag Europe lower after fresh UK quarantine rule

(Reuters) – European shares fell on Friday as travel stocks took a hit after Britain added more European countries to its quarantine list, while disappointing retail sales data from China raised doubts over the pace of economic recovery.

The pan-European STOXX 600 was down 0.8% by 0713 GMT, but was on course to notch gains for a second straight week.

Travel and leisure stocks .SXTP dropped 2.1%, with UK-based airlines and tour operators such as TUI (TUIGn.DE) (TUIT.L), Easyjet EZL.L, British Airways-owner IAG (ICAG.L) falling between 3.5% and 5.5%.

French shares .FCHI fell 1.0%, with Air France KLM (AIRF.PA) dropping 3.8%.

The United Kingdom decided to impose a 14-day quarantine on arrivals from France, beginning Saturday, and added the Netherlands, Malta and three other countries to the list.

Meanwhile, global markets were sluggish as China’s retail sales showed a surprise drop in July, while the factory sector’s recovery struggled to pick up pace, dimming prospects of speedy rebound from the coronavirus crisis.

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