London’s FTSE 100 weighed down by consumer and airline stocks
London’s FTSE 100 dipped lower today, weighed down by losses in financial and consumer stocks, with banking stocks some of the biggest decliners of the month.
Banks, industrials and mining stocks were down between 0.1 per cent and 0.7 per cent after leading the gains last week as investors sectors that look to benefit as restrictions ease.
The blue-chip index fell 0.3 per cent, with consumer stock Burberry tumbling 8.09 per cent after its CEO Marco Gobbetti said he would step down from the role.
The healthcare sector performed well and remains on course for its fourth straight monthly gains, with AstraZeneca rising 1.9 per cent.
The domestically focused mid-cap FTSE 250 index declined 0.2 per cent.
Turbulent travel stocks
Travel stocks have plunged as Covid-19 cases in Asia have spiked and fears of strict European quarantine rules swell in the UK.
“Optimism on the horizon for the travel industry has once again been obscured by dark clouds, as, one by one, European countries bring back in tough quarantine rules,” senior investment and markets analysts at Hargreaves Lansdown, Susannah Streeter, said.
“EU leaders are preparing to meet this week and Germany’s Angela Merkel is hoping to gain approval for a consensus on quarantine to stop the spread of the delta variant. So, it’s looking increasingly likely this summer will be a washout for the industry after all.”
Airline stocks slipped this morning but continued to edge lower in London’s afternoon trading.
TUI tumbled 4.3 per cent in early trading, EasyJet slipped 4.8 per cent, IAG fell 5.3 per cent and Ryanair sank 3.5 per cent this afternoon.
It comes as Portugal re-imposed isolation requirements for unvaccinated travellers and ‘ever-changing’ rules spark a lack of confidence in travellers and investors alike.
“The ever-changing rules and restrictions mean that trying to plan an overseas holiday has become like a game of snakes and ladders,” Streeter added.
“A relaxation of the rules by one country is swiftly followed by a tightening in another, leaving travellers at risk of being left isolated in a hotel overseas with only a TV remote control for company.”