View the article online at http://citywire.co.uk/money/article/a893132
Pound and travel stocks fall after Brussels attack
Bomb explosions in Brussels, claimed to have been carried out by Islamic State, or Isis, kill at least 34 people and injure many more.
(Update) The pound and tourism stocks tumbled today after explosions in Brussels claimed to have been carried out by Islamic State, or Isis, killed at least 30 people and left many seriously injured.
Already weakened by political splits in the Conservative government and new data showing UK inflation stuck at a very low 0.3% last month, the pound plunged 1% against the dollar to $1.4209 as investors sought safe havens following news of the blasts shortly after 7am GMT.
There was even speculation that the latest terrorist outrage could influence the outcome of the UK’s European referendum on 23 June.
Gold, a traditional safe haven in times of danger, rose 0.64% to $1,251 an ounce with miners of the precious metal like Randgold Resources (RRS) making gains in London.
But it was travel-related stocks that fell the most. Travel agent TUI Travel (TUI) was the FTSE 100’s biggest decliner, down over 3% to 971.5p, with InterContinental Hotels (IHG) and British Airways owner International Consolidated Airlines Group (ICAG) both off 2.3%.
After initially retreating 31 points or 0.5%, the FTSE 100 approached the close just eight points or 0.1% down at 6,176, with bookies Paddy Power Betfair, up 3.5% at £93.40, the biggest riser.
Capita (CPI) fell 2.8% to a two-week low of £10.17 after analysts at Stifel cut the outsourcer to ‘sell’ from ‘hold’.
SVG Capital (SVI ) gained 2% to 501.5p after the private equity investment trust continued the run of good news from the sector with strong annual results.
Smaller company newspaper publisher Johnston Press (JPR) jumped 15% to 47.25p as it unveiled further cost cutting.
Two blasts hit the departures area of Zaventem airport shortly after 7am GMT, according to the BBC. An hour later an explosion occurred in Maalbeck metro station.
The airport and city transport system were closed as Belgium raised its terror threat to its highest level.
The attack follows the arrest in Brussels last week of Salah Abdeslam, who is believed to have been involved in the terrorist attacks in Paris last November.
In the afternoon a news agency affiliated to Isis put out a statement saying the group had claimed responsibility.
Security at Gatwick and Heathrow airports was stepped up and the prime minister, David Cameron, chaired a meeting of the Cobra emergency response committee this morning.
News sponsored by:
Making the most out of Europe's potential means seeing things differently. Learn more about how BlackRock's focused approach to investing in Europe helps investors unlock the continent's vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Look up the shares
- International Consolidated Airlines Group SA
- easyJet plc
- Carnival PLC
- InterContinental Hotels Group PLC
- Fresnillo PLC
- Randgold Resources Ltd
- Thomas Cook Group plc
- Johnston Press PLC
- Imagination Technologies Group PLC
- Capita PLC
Look up the investment trusts
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.