It is not too surprising to find the FTSE 100 index is struggling to maintain its starting position this morning, as the after-effects of yesterday's Madrid bombings will still be felt across European stock markets.
Travel firms BA, Carnival and Hilton Group has seen the worst of the downward trend within the first hour of trading on Friday, as there are now concerns tourists may be deterred from travelling after yesterday’s terrorist attacks.
The FTSE 100 is hovering very close to the 4400 mark – having earlier this week been above 4550 points – as the benchmark index is down 36 points or 0.8% to 4408. The FTSE All-Share has experienced a similar fall of 0.8% to 2200.
Goldman Sachs has cut BA’s earnings per share estimate to 18p, helping to lower its share price 10p or 3.5% to 274.5p while Carnival – owners of P&O cruises – is down 78p or 3.2% to £23.97.
BAA, the airport manager, also slipped 10p to 519.5p, while the Hilton (hotels) Group is also off 5p or 213p, and the InterContinental Hotels Group is down 6.5p or 511.5p.
The carrier had its 2004 earnings per share estimate cut by 14 percent to 18 pence at Goldman, Sachs & Co. Carnival, which operates cruise ships including the new Queen Mary 2, shed 78 pence, or 3.2 percent, to 2,397 pence.
Asian firms saw an equally uneasy day, as the travel companies Qantas Airways and All Nippon Airways were worst hit, while the Korean Kospi index fell the fullest impact and closed down 2.4% to 848.8.
Activity in the US is not much better, as all three indices closed down at least 1%.
The Nasdaq fared best and lost only 20.26 points or 1% to 1,943.89 while the Dow Jones dropped 168.51 or 1.64% to 10,128.38 and the S&P 500 index ended 17.11 points lowers or 1.52% to 1,106.78.IFAonline
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