Travel stocks drag Europe lower after fresh UK quarantine rule

European shares fell on Friday as travel stocks took a hit after Britain added more European countries to its quarantine list, while disappointing retail sales data from China raised doubts over the pace of economic recovery. The pan-European STOXX 600 was down 0.8% by 0713 GMT, but was on course to notch gains for a second straight week.

European shares fell on Friday as travel stocks took a hit after Britain added more European countries to its quarantine list, while disappointing retail sales data from China raised doubts over the pace of economic recovery.

The pan-European STOXX 600 was down 0.8% by 0713 GMT, but was on course to notch gains for a second straight week. Travel and leisure stocks dropped 2.1%, with UK-based airlines and tour operators such as TUI , Easyjet, British Airways-owner IAG falling between 3.5% and 5.5%.

French shares fell 1.0%, with Air France KLM dropping 3.8%. The United Kingdom decided to impose a 14-day quarantine on arrivals from France, beginning Saturday, and added the Netherlands, Malta and three other countries to the list.

Meanwhile, global markets were sluggish as China's retail sales showed a surprise drop in July, while the factory sector's recovery struggled to pick up pace, dimming prospects of speedy rebound from the coronavirus crisis.