Anyone not taking the Covid variants serious because of vaccines, better change their thinking. It looks like travel investors have.
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% by 0708 GMT. Travel & leisure slid almost 1%, with shares in travel firm Tui declining 4.2%.
UK’s FTSE 100 slipped 0.4% 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 U.S. inflation ran hotter than expected in June, leading many traders to price in faster U.S. interest rate hikes.
Swedish telecoms operator Tele2 gained 3.7% after it reported a rise of 8% in quarterly core earnings, helped by cost savings and less headwinds related to the pandemic. nL4N2OP3PI.
German fashion house Hugo Boss rose 4.4% after it forecast its revenue to grow by 30% to 35% this year.
(Reporting by Sruthi Shankar in Bengaluru; editing by Uttaresh.V)
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Photo credit: People stand outside the TUI travel center following the coronavirus disease (COVID-19) outbreak, in Hanley, Stoke-on-Trent, Britain. Carl Recine / Reuters