Travel and tourism hit by global tensions
Tue: Heightened international tensions weighed on the market, with travel and leisure stocks in particular leading the FTSE 100 down 28.26 points to close at 6,277.23.
EasyJet and British Airways owner International Consolidated Airlines slumped after both suspended all flights to and from Egypt’s Sharm el-Sheik resort due to security concerns.
Hotel companies Whitbread, which owns Premier Inn, and InterContinental Hotels were also knocked lower by worries about the effects on tourism.
The downing by Turkey of a Russian military aircraft on the border of Syria also added to global nervousness.
Back home, the Bank of England‘s chief economist Andy Haldanesaid told the treasury select committee of MPs that monetary policy may need to be eased rather than tightened in the short-term in response to headwinds from emerging markets.
Governor Mark Carney said that interest rates remained low due to external risks, demographic changes and the impact of technology on the labour market.
But he gave no further guidance on when rates might rise.
Traders are also awaiting the outcome of Chancellor George Osborne’s Autumn Statement with housebuilders, notably Taylor Wimpey and Barratt Developments, lower.
Rolls-Royce was a riser after chief executive Warren East outlined his “major restructuring” which will aim to save up to £200m a yeaer.