Airlines suffer on travel fears as UK stalls full reopening

Dublin lags other markets as investors shy away from leading stocks

Airlines suffered as British prime minister Boris Johnson’s decision to stall reopening in England prompted fresh fears about air travel’s recovery in Europe. Photograph: Steve Parsons/PA

Airlines suffered as British prime minister Boris Johnson’s decision to stall reopening in England prompted fresh fears about air travel’s recovery in Europe. Photograph: Steve Parsons/PA

 

Dublin lagged other European markets as investors swerved leading Irish stocks on a day when equities elsewhere hit record highs.

DUBLIN

Ryanair Holdings slid 2.59 per cent to close at €16.165 as British prime minister Boris Johnson’s decision to stall reopening in England prompted fresh fears about air travel’s recovery in Europe. The Irish group, which counts Britain as one of its biggest markets, hit a low of €16.125 during the day.

Paddy Power and Betfair owner, Flutter Entertainment, shed 1.54 per cent to €159.70 as gambling stocks were generally weak on Monday.

Ingredients and food group Kerry closed 1.75 per cent down at €106.40. Building materials giant CRH another index heavyweight, closed 1.36 per cent down at €42.75.

Traders remarked that a lot of Irish big names were hit on Monday, pulling the market back. Packaging manufacturer Smurfit Kappa was the notable exception, climbing 2.23 per cent to €46.32.

“They’ ve had a serious run, but they keep going better and better,” said one trader.

LONDON

Aer Lingus and British Airways owner, International Airlines Group, tumbled 4.17 per cent to 194.72p as travel stocks generally performed poorly.

Low-cost carrier and key Ryanair rival, Easyjet, also suffered, shedding 2.69 per cent to close at 932.6p.

Woodies DIY owner, Grafton Group, slid 1.3 per cent to 1,135p as construction-linked stocks dipped across Europe. The Irish builders’ merchant has its sole listing in London, while owns several British businesses.

In contrast, Royal Dutch Shell climbed 2.7 per cent to 1,458p as oil and energy stocks helped drive indices across Europe to new highs. Crude prices rose on Monday on predictions that demand would grow this year.

A Reuters report that Royal Dutch Shell was reviewing its stake in a large US oilfield for a possible sale helped boost the Anglo-Dutch giant’s popularity with investors.

Its advance helped the blue chip FTSE-100 Index hit its highest level since February 2020, although it lost some of those gains later in the day.

Fashion firm Ted Baker reported a 44 per cent slump in revenues to £352 million for the year to January as its pre-tax losses widened by around 29 per cent. Shares in the company were 7.9 per cent lower at 153.3p.

Outsourcing giant Serco climbed after it raised its profit forecasts on the back of growing demand for Covid-19 track and trace provisions.

EUROPE

The pan-European Stoxx 600 rose 0.2 per cent to a record-high close of 458.32 points. The index had touched an all-time high of 460.51 earlier in the session.

German software developer Teamviewer jumped 5.9 per cent to near the top of the Stoxx 600, after it announced a partnership with software giant SAP.

Airline Lufthansa dipped 0.74 per cent to to €10.68. Rival Air France KLM fell 1.4 per cent to €4.59.

Dutch medical equipment company Philips tumbled 4.2 per cent and was among the worst performers on the Stoxx 600 after it said it would recall some CPAP breathing devices and ventilators globally because of a foam part that might degrade and become toxic.

Italy’s stock index rose 0.2 per cent, while its 10-year sovereign bond yield sank to eight-week lows on continued dovish signals from the ECB.

NEW YORK

The S&P 500 and the Dow eased on Monday, a day after the S&P 500 hit a record closing high, as investors awaited cues from the Federal Reserve’s meeting this week on the central bank’s outlook on inflation and the future of bond purchases.

The technology-heavy Nasdaq rose for the sixth time in the past seven sessions, lifted by gains in shares of Tesla, Apple, and Amazon. com.

Energy stocks added 0.3 per cent as crude prices hit their highest levels in more than two years.

Lordstown Motors Corp tumbled 18 per cent after it said chief executive Steve Burns and chief financial officer Julio Rodriguez have resigned, days after the electric-truck maker warned it may not have enough cash to stay in business over the next year. – Additional reporting: Reuters