In today’s trading, European stock indices trading down after the stock prices of airlines and tourism sector declined.
The composite index of the largest companies in the region Stoxx Europe 600 fell 0,3% – to 339.67 points.
Investors’ attention is directed to the meeting of the European Central Bank, which will take place later today. The ECB probably will not change its monetary policy after a meeting despite the threat of a slowdown in economic recovery in the euro zone after the UK decision to withdraw from the EU, believe experts interviewed by various media outlets.
However, many analysts expect a slight reduction in central bank interest rates on deposits in the coming months from the current -0.4%, as well as the extension of the program of quantitative easing (QE) already at the September meeting.
EasyJet Plc’s shares fell during trading on 4,7%. British low-cost airline has reduced its revenue by 2.6% in the third fiscal quarter and warned that political turmoil in Europe raises concerns regarding the booking volume of tickets.
Meanwhile, the German airline Deutsche Lufthansa said that the recent series of terrorist attacks has led to a decrease in demand. This can lead to a decrease in profit for the Lufthansa this year, the company said. Lufthansa shares fell in price by 7.8%.
Shares of International Consolidated Airlines Group (IAG), which owns the airline British Airways, as well as tour operator TUI fell during trading by 3.5%.
Shares of the Swedish-Swiss electrical group ABB Ltd. rose during trading by 1,3%. ABB, one of the world leaders in the production of industrial robots and electrical equipment, cut its net profit in the 2nd quarter of 2016 by 31% due to restructuring costs -. to $ 406 million which exceeded the average market forecast of $ 393 million.
Cost of Hermes International shares jumped 3%. The French fashion house has announced an increase in revenue in the first six months of 2016 by 6% – up to 2.4 billion euros.
SABMiller shares rose 0.3% on the information that the US Justice Department approved the merger with the Belgian brewer Anheuser-Busch InBev (AB InBev), removing thus one of the last major obstacles to the transaction volume of about $ 108 billion .
Shares of Swiss pharmaceutical company Roche GS dropped by 0.5%, despite the fact that it has confirmed its forecast for 2016 and reported on the level of sales in the first half of this year, higher than expected.
At the moment
FTSE 6701.77 -27.22 -0.40%
DAX 10124.91 -17.10 -0.17%
CAC 4361.98 -17.78 -0.41%
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