Left Menu
Development News Edition

UPDATE 2-European shares fall on Middle East tensions; oil surge hits airline stocks


UPDATE 2-European shares fall on Middle East tensions; oil surge hits airline stocks

European shares slipped from near record highs on Friday after a U.S. air strike in Iraq that killed a top Iranian commander increased Middle East tensions and spurred moves out of risk assets, while an oil price surge hammered airline stocks. Iran's Supreme Leader Ayatollah Ali Khamenei vowed harsh revenge after Iranian Major General Qassem Soleimani, architect of the country's spreading military influence in the Middle East, was killed in the air strike at Baghdad airport.

Leaders from many other countries urged restraint. But Ken Odeluga, market analyst at City Index said: "As such, chances that a further escalation of tensions with Washington can be avoided, appear to be low." The pan-European STOXX 600 index was down 0.3%, with German shares having their worst day in a month as Lufthansa slumped 6.5%.

Along with losses in airlines Air France and EasyJet Europe's travel and leisure sector shed 1.6%, on fuel price concerns as oil jumped more than 3%. The jump in oil prices lifted the regional energy sector index to seven week highs which tied in with a weaker pound to help London's FTSE buck the trend.

"Even if we hear nothing over the weekend the events have shown that this is a complex geopolitical situation and the ongoing uncertainty will have to be dealt with for a while," said Ingo Schachel, head of equity research at Commerzbank. Global financial markets had started the new decade on a high note on improving U.S.-China trade relations, further monetary easing in China and a brightening economic outlook.

But data on Friday showed unemployment Germany rose more than expected in December, while U.S. manufacturing for the same period saw a bigger-than-expected dip. Friday's moves tipped an otherwise flat week for Europe into red.

In corporate news, tobacco companies Match and British American Tobacco rose to the top of the STOXX 600 after the U.S. Food and Drug Administration exempted menthol and tobacco from a list of popular e-cigarette flavours that it had banned under new guidelines. Cellnex Telecom SA rose 2.3% after agreeing to buy Portuguese telecommunication tower operator OMTEL for around 800 million euros ($894 million).

Trading for the first time this year, Swiss stocks, rose 0.8% after a near 26% rise last year as a investors bought into consumer goods.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Handling fake news Infodemic in time of Coronavirus epidemic

Social media has provided a platform where everybody can disseminate his her views without any supervision. Its excellent if the message is genuine but misinformation is equally disastrous. Health is such a topic where every Tom and Harry c...

Sentiment Analysis on Budget 2020: Long shot for solution to economic worries?

Industries and individuals alike had high expectations from the government to take tangible steps but the budget 2020 seems to have failed expectations....

Videos

Latest News

Reuters Sports News Summary

Following is a summary of current sports news briefs. Fury, Wilder bulked up and ready for rematchOn the eve of their highly-anticipated rematch both Tyson Fury and Deontay Wilder tipped the scales heavier than they were in their first figh...

'China delaying permission to India to send flight carrying relief materials to Wuhan'

China is delaying the grant of clearance to Indias proposal to send an Indian Air Force flight to carry relief material for people affected by coronavirus in the neighboring country and bring back Indians from its city of Wuhan, official so...

Condition of 8 coronavirus-infected Indians onboard Diamond Princess improving

The condition of eight Indians, who were onboard quarantined cruise ship off the coast of Japan and currently undergoing treatment for the new strain of coronavirus, is improving, the Indian Embassy in Tokyo said on Friday. In a tweet, the ...

China 'deliberately delaying' grant of clearance for third evacuation flight from India

Beijing is yet to grant clearance to the third flight from New Delhi, which will carry relief supplies to the virus-hit nation and also bring back the remaining Indian nationals from Wuhan, the epicentre of the deadly coronavirus that has k...

Give Feedback