By Steve Goldstein, MarketWatch
Airlines and hotels bore the brunt of selling in London trade on Monday as concerns about the coronavirus’s spread in South Korea and Italy roiled markets globally.
EasyJet /zigman2/quotes/202825892/delayed UK:EZJ +2.18% shares nosedived nearly 15%, PPHE Hotel Group /zigman2/quotes/208903528/delayed UK:PPH +0.89% fell 11% and Budapest-headquartered Wizz Air /zigman2/quotes/210449062/delayed UK:WIZZ +0.06% slumped 10%.
“At the early stage of the coronavirus story, long-haul carriers like International Consolidated /zigman2/quotes/208070069/delayed UK:IAG +5.70% and Lufthansa /zigman2/quotes/205496028/delayed DE:LHA +0.79% [felt] the pain on account of their routes to China, but now short-haul airlines are taking a beating too,” said David Madden, markets analyst at CMC Markets UK.
The British pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.0080% traded just below the $1.29 level, while the yield on the 10-year gilt /zigman2/quotes/211347177/realtime BX:TMBMKGB-10Y -10.75% fall five basis points to 0.52%. Yields move in the opposite direction to prices.
The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.34% dropped 3% to 7178.51, with all the major European stock markets also getting a hammering. The U.K. actually outperformed other markets, notably Italy /zigman2/quotes/210598024/delayed IT:I945 +2.88% which fell close to 5%.