Travel stocks drag Europe lower, inflation woes mount

Worries about the spread of the Delta variant weigh on markets

Photograph: iStock

Photograph: iStock

 

European stocks slipped from peaks on Wednesday, as the global mood soured on increasing concerns about inflation, while travel stocks dropped on worries about the Delta variant’s spread in the continent.

The pan-European Stoxx 600 index fell 0.2 per cent by 0708 GMT. Travel & leisure slid almost 1 per cent, with shares in travel firm Tui declining 4.2 per cent.

UK’s Ftse 100 slipped 0.4 per cent on a stronger pound after data showed British inflation jumped further above the Bank of England’s target in June.

Markets were already jittery after data on Tuesday showed US inflation ran hotter than expected in June, leading many traders to price in faster US interest rate hikes.

Swedish telecoms operator Tele2 gained 3.7 per cent after it reported a rise of 8 per cent in quarterly core earnings, helped by cost savings and less headwinds related to the pandemic.

German fashion house Hugo Boss rose 4.4 per cent after it forecast its revenue to grow by 30 per cent to 35 per cent this year. – Reuters