UK's FTSE 100 falls as Turkey worries hit travel industry's stocks


The U.K.’s main stock index pulled back Monday, joining in a global selloff that was blamed on worries about Turkey’s precarious financial condition.

Travel-related shares with exposure to Turkey were among the big decliners.

How markets are performing

The FTSE 100

UKX, -0.52%

fell 0.6% to 7,624.33, after tumbling 1% on Friday as concerns over Turkey escalated.

The British blue-chip gauge is showing a drop of 0.8% for the year to date.

The pound

GBPUSD, -0.0548%

was buying $1.2748, down slightly from $1.2771 late Friday in New York.

What’s moving markets

Stocks in the U.K. and the rest of Europe have been selling off on fears about potential contagion from Turkey’s problems, especially in the banking sector.

The country’s central bank on Monday made policy moves that failed to alleviate concerns among investors. It pledged to provide “all the liquidity the banks need” in a statement. It also said banks would be able to borrow foreign-exchange deposits from the central bank at a one-month maturity and one-week maturities.

Analysts said Turkey’s reluctance to raise interest rates stood out.

See: Turkish lira hits fresh low as Erdogan’s currency crisis echoes through markets

What are strategists saying?

“The central bank has said it will take ‘all necessary measures’ to ensure financial stability and will take steps to ensure liquidity is provided. But in stopping short of actually raising rates, we must question if the central bank has the arsenal to combat this currency rout and avoid a financial crisis in Turkey,” said Neil Wilson, chief market analyst for Markets.com, in a note.

“As well as banks, we note that travel and tourism stocks with exposure to Turkey, like Thomas Cook, TUI and easyJet, were among the heavier fallers today,” Wilson added.

Stocks in focus

Shares in TUI AG

TUI, -4.47%

and easyJet PLC

EZJ, -0.81%

were down by 2.9% and 1.1%, respectively.

Over on the mid-cap FTSE 250, Thomas Cook Group PLC’s stock

TCG, -3.30%

fell 2.5%.

Shares in Paddy Power Betfair PLC

PPB, -2.83%

dropped 2.8% after the gambling company was downgraded to sell from neutral by Citigroup analysts, who reportedly cited factors such as disappointment with its online business and its Australian unit.

Providing critical information for the U.S. trading day. Subscribe to MarketWatch's free Need to Know newsletter. Sign up here.

Let’s block ads! (Why?)


Source link

What's Your Reaction?

Cry Cry
0
Cry
Cute Cute
0
Cute
Damn Damn
0
Damn
Dislike Dislike
0
Dislike
Like Like
0
Like
Lol Lol
0
Lol
Love Love
0
Love
Win Win
0
Win
WTF WTF
0
WTF

Comments 0

Your email address will not be published. Required fields are marked *

You may also like

More From: Travel

DON'T MISS

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format