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France attack hits European shares

Friday, July 15, 2016 - 01:36

European stock markets are knocked off balance after an attack in the French city of Nice kills more than 80 people. As David Pollard reports, shares of travel and leisure companies are the hardest hit.

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If Asian share markets ended on eight-month highs on upbeat Chinese growth numbers, European stocks were downbeat after the open. Details of an attack in Nice that left over 80 people dead filtering through - the second major attack on French soil in eight months. (SOUNDBITE) (German) CAPITAL MARKETS ANALYST, OLIVER ROTH, SAYING: "There is a definite feeling of depression because of Nice. From a purely economic point of view, there's no immediate impact but the markets are affected by the mood which is anything but positive." French hotels operator Accor - Europe's largest hotel group - fell over four per cent. And there were sharp losses for Air France - KLM, easyJet and British Airways' owner IAG. Amid a feeling too that - possibly - the recent upward trend was losing momentum. Traders weighing up risks like Brexit or the Chinese slowdown - against the prospect of more central bank policy easing. (SOUNDBITE) (English) CITI EUROPEAN ECONOMIST, CHRISTIAN SCHULZ, SAYING: "These two factors seem to balance each other out, especially in the equity markets. There are some sectors which like banks for instance, are clearly at risk, traded like that in financial markets, but there are other sectors which benefit from the monetary policy we have at the moment so on balance we think it's a kind of equilibrium phase we're in at the moment." That said, some investors also betting, it appears, on the prospect of more fiscal stimulus from governments ... ...a thought helping drive German bond yields to their biggest weekly rise in nearly three months - and for some U.S. Treasury yields, their largest gain in exactly a year.

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France attack hits European shares

Friday, July 15, 2016 - 01:36