Banks drag the FTSE 100 down; airline shares drop on travel restrictions
Banks and industrials weighed on London’s FTSE 100 on Friday, while airline stocks came under pressure as Britain again tightened travel restrictions.
The blue chip FTSE 100 (.FTSE) edged down 0.1%, along with HSBC (HSBA.L), Prudential (PRU.L), Barclays (BARC.L) and the Lloyds banking group (LLOY. L) down 0.7% and 1.2% after weaker-than-expected US employment data pushed bond yields lower.
The miners, including Anglo American (AAL.L), BHP Group (BHPB.L) and Rio Tinto (RIO.L) offered the greatest support.
British Airways owner IAG (ICAG.L) lost 0.9% after Britain removed Portugal from its list of non-quarantined trips and added seven more countries to its red list. Read more
Other airlines, including Ryanair Holdings, Wizz Air (WIZZ.L) and EasyJet, fell between 1% and 2.6%.
The FTSE 250 Index (.FTMC) of domestically focused mid-cap stocks was also little changed, rising 0.1%.
“The travel industry has continued to be impacted by yesterday’s earthquake decision to remove Portugal from the green list,” said Danni Hewson, financial analyst at AJ Bell.
“Hopes for anything approaching a normal summer for the industry now appear to be pretty much over.”
Meanwhile, the prevalence of COVID-19 infections in England nearly doubled in the last week of May and the estimated “R” breeding number increased as the “delta” variant became more prevalent, sparking concerns about plans to unlock the country. Read more
Globally, stocks rallied as a weaker-than-expected U.S. employment report allayed concerns that a rapid recovery in the world’s largest economy could prompt the Federal Reserve to turn off the taps stimulus earlier.
After crossing the 7,000 mark in mid-April, the FTSE 100 index hovered in a narrow range over fears that rapid economic growth would lead to higher inflation and faster tightening of monetary policies. accommodating.
Among other stocks, Reckitt Benckiser Group (RKT.L) rose 1.3% and B&M European Value Retail (BMEB.L) added 1.9% after brokers increased their price targets.
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