On Friday, British Airways and travel-related companies lost nearly £2 billion in value due to Austria decided to order a nationwide blockade Raised concerns about the implementation of new epidemic restriction measures throughout Europe.
Austria will begin its third nationwide lockdown from Monday, and the lockdown may last until December 12 to curb the surge in coronavirus cases and the rise in deaths.
Other European countries may take restrictive measures — a similar coronavirus outbreak in Germany — leading to a sharp sell-off of tourism companies listed in the UK.
British Airways owner IAG fell 3.8%, evaporating the company’s market value by nearly 300 million pounds.IAG, which also owns Iberia Airlines, fell to a two-month low as investors wrote off gains from transatlantic trips to the United States Recovered last week.
The biggest decliners in the FTSE 100 Index include Rolls Royce, A drop of nearly 4%, and Whitbread, the owner of Premier Inn, and InterContinental Hotels Group are also in decline.
The blue chip index fell to a three-week low, closing down 32 points to 7223 points.
“Surge in number of cases [in Austria] Far beyond last year’s peak,” said Craig Erlam, a senior market analyst at trading company Oanda. “Although the death toll is still well below the peak, they are accelerating. Arrest him before getting worse. As Germany sees a similar trend, the question now is whether the largest economy in the region will follow the same path. “
Companies affected by negative investor sentiment on Friday also included easyJet, Ryanair, Lufthansa and Wizz Air, as well as holiday package company Tui and cruise ship operator Carnival.
The shares of SSP, which operates the Caffè Ritazza and Upper Crust chains in transportation hubs, and the restaurant group that operates chains such as Wagamama and Frankie & Benny’s, have also been hit. Shares of National Express and WH Smith, which operates at airports and train stations, also fell.
German Health Minister Jens Span said on Friday that the country “faces a national emergency” and does not rule out a similar nationwide blockade. “We are in a position where no possibility can be ruled out,” he said.
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On Thursday, the head of the German disease control agency said that if strict measures are not taken to curb the spread of the coronavirus, the country will usher in a “very bad Christmas.”
Elam said: “The situation in other countries such as France, Italy and Spain is not that serious, but the situation may change in the next few weeks, as we saw in the same period last year. The high vaccination rate means the number of cases and The link between the death toll is much lower, but the former is rising at an alarming rate, which is obviously hard to ignore.”
Fearing that winter energy demand will be hit by the new blockade measures, oil prices have also fallen sharply. Brent crude oil fell more than 3.5% to US$78.31 per barrel, the lowest level since October 1, and nearly 10% below the three-year high last month.
Some economists have warned that the United States may be vulnerable to a new wave of infections this winter. Less than 60% of countries are vaccinated, which is lower than some European countries.
“The cold weather has triggered a sharp rise in infection rates in Europe, and because of the generally low vaccination rates in the United States, there is a risk of seasonal surges in the Midwest and Northeast,” said Chief North American Economist Paul Ashworth. Capital economics.
Energy stocks, banking stocks, and industrial stocks fell on Wall Street, while the rebound of technology companies that were less susceptible to the lockdown pushed the Nasdaq Composite Index to record highs.
