FTSE 100 watch: Footsie down as airlines suffer after Barcelona attack

on Aug 18, 2017

The FTSE 100 index has fallen deep into the red in today’s session, weighed down by travel and leisure stocks, which have been sold off in the wake of yesterday’s attack in Barcelona. Randgold Resources (LON:RRS) meanwhile has jumped to the top of the FTSE 100 leaderboard, tracking gold prices higher.

As of 12:24 BST, the Footsie had lost 71.24 points to stand 0.96 percent lower at 7,316.63. The blue-chip index, however, remains on track to post a small gain for the week, having benefitted from improved global sentiment earlier in the week. Airlines are currently leading the FTSE 100 lower, after a suspected Islamist militant drove a van into crowds in Barcelona yesterday, killing 13 people and injuring more than 100.

“The entire airline and leisure industry is down today purely from the attacks,” John Moore, trader at Berkeley Capital, told Reuters. “People in the forthcoming months, we believe, will be less likely to take trips abroad.” Moore, however, added that he nevertheless expected airline stocks to recover.

Shares in British Airways and Iberia parent International Consolidated Airlines Group (LON:IAG) are 1.59 percent down at 614.50p, while easyJet (LON:EZJ) has given up 0.84 percent to 1,290.00p. Holiday Inn and Crown Plaza owner InterContinental Hotels Group (LON:IHG) meanwhile is 1.55 percent down at 3,928.00p.

At the other end of the spectrum has been Randgold Resources, whose shares have been in demand on the back of higher gold prices, as investors flocked to safe haven assets following the Barcelona attack. Randgold’s share price is 0.89 percent up at 7,495.00p.

The FTSE 100 index was 0.97 percent down at 7,315.85 points as of 12:33 BST on Friday, 18 August 2017.