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Aug. 18, 2017, 12:21 p.m. EDT

European stocks sell off after deadly terrorist attack in Barcelona

U.S. political worries also pressuring European stocks

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By Sara Sjolin, MarketWatch , Carla Mozee


AFP/Getty Images
Policemen check a car involved in a terrorist attack in Cambrils on Thursday.

Spanish stocks slumped Friday, as part of a wider selloff across European markets a day after terrorists killed at least 13 people in the heart of Barcelona.

More than 100 people were injured in Spain’s second-largest city in a late Thursday afternoon attack claimed by Islamic State, and the death toll could rise, officials said. Hours later, police killed five alleged terrorists as they responded to a separate attack that hurt seven people in Cambrils, a town southwest of Barcelona, the Catalan government said.

In Madrid, the IBEX 35 /zigman2/quotes/210597995/delayed XX:IBEX -3.18%  dropped 0.6% to close at 10,385.70, and had fallen by as much as 1.7% in early trade. The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP -3.81% fell 0.7% to end at 374.20, trimming its weekly gain to 0.6%.

“Airlines bore the brunt of a risk-off turn on the open,” said ETX Capital’s senior market analyst Neil Wilson in a note. “As we’ve seen over the last couple of years in Europe, these kinds of atrocities affect tourism and will hit airline earnings. Investors are concerned that demand will fall over the rest of the year, which was already looking like it would be a tough patch for the industry.”

Shares of Air France-KLM SA /zigman2/quotes/205396176/delayed FR:AF -3.12%  dropped 1.6%, Ryanair Holdings PLC gave up 2%, International Consolidated Airlines Group SA /zigman2/quotes/208070069/delayed UK:IAG -6.54%   /zigman2/quotes/204976351/delayed ICAGY -3.73% , which runs British Airways, fell 2%, and easyJet PLC /zigman2/quotes/202825892/delayed UK:EZJ -5.32%  lost 0.9%.

Read: Airlines slump after Barcelona attack, but here’s why you should bet they’ll recover

On the IBEX 35, Melia Hotels International SA /zigman2/quotes/204223740/delayed ES:MEL -3.28%  gave up 2% and supermarket chain Distribuidora Internacional de Alimentacion SA /zigman2/quotes/202808179/delayed ES:DIA -7.69%  dropped 2.6%.

Other movers: Shares of Royal Vopak NV /zigman2/quotes/205771293/delayed NL:VPK -1.72%  tumbled 9.1% after the tank-storage terminal operator issued a warning on full year profits.

Stada Arzneimittel AG  soared 13% after news that Bain Capital LLC and Cinven Group Ltd. has won over enough shareholders to proceed with their takeover of the German drugmaker.

White House drama: European stocks were also under pressure following reports out late Thursday that White House economic adviser Gary Cohn would leave his role, and deal a blow to U.S. President Donald Trump’s plan for a tax-code overhaul. The White House said Thursday that Cohn is staying, but Cohn was reportedly upset by Trump’s response to last weekend’s deadly white supremacist rally in Charlottesville, Va.

“Markets had originally given President Trump the benefit of the doubt and hoped his abrasive style would cut through the political web and get things done. However, far from being a force for change, seven months into his presidency there has been no noticeable policy success and U.S. politics is more divided than ever,” said Rebecca O’Keeffe, head of investment at Interactive Investor, in a note.

“Dissolving his infrastructure council before it even began highlights just how volatile the situation is and the question for investors is changing from what support Trump may deliver to markets to what risk he brings,” she said.

Indexes: France’s CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 -3.97%  fell 0.6% to 5,114.15 and Germany’s DAX 30 index /zigman2/quotes/210597999/delayed DX:DAX -3.80%  fell 0.3% to 12,165.19. The U.K.’s FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX -2.63%  dropped 0.9% to 7,323.98.

The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.1324%  bought $1.1747, up from $1.1725 late Thursday in New York.

/zigman2/quotes/210597995/delayed
XX : Spain: Madrid
8,417.80
-276.90 -3.18%
Volume: 275.31M
Jan. 24, 2022 5:38p
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/zigman2/quotes/210599654/delayed
XX : STOXX
456.36
-18.08 -3.81%
Volume: 0.00
Jan. 24, 2022 11:03p
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/zigman2/quotes/205396176/delayed
FR : France: Euronext Paris
3.88
-0.13 -3.12%
Volume: 7.25M
Jan. 24, 2022 5:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€2.57 billion
Rev. per Employee
€144,158
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/zigman2/quotes/208070069/delayed
UK : U.K.: London
147.48 p
-10.32 -6.54%
Volume: 38.36M
Jan. 24, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£7.83 billion
Rev. per Employee
£72,726
loading...
/zigman2/quotes/204976351/delayed
US : U.S.: OTC
$ 4.01
-0.16 -3.73%
Volume: 497,062
Jan. 24, 2022 3:57p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$10.61 billion
Rev. per Employee
$97,705
loading...
/zigman2/quotes/202825892/delayed
UK : U.K.: London
594.80 p
-33.40 -5.32%
Volume: 6.85M
Jan. 24, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£4.75 billion
Rev. per Employee
£112,154
loading...
/zigman2/quotes/204223740/delayed
ES : Spain: Madrid
6.31
-0.21 -3.28%
Volume: 1.20M
Jan. 24, 2022 5:38p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€1.44 billion
Rev. per Employee
€22,759
loading...
/zigman2/quotes/202808179/delayed
ES : Spain: Madrid
0.02
-0.0013 -7.69%
Volume: 72.06M
Jan. 24, 2022 5:38p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€981.16 million
Rev. per Employee
€173,872
loading...
/zigman2/quotes/205771293/delayed
NL : Netherlands: Euronext Amsterdam
29.11
-0.51 -1.72%
Volume: 667,001
Jan. 24, 2022 5:35p
P/E Ratio
19.95
Dividend Yield
4.12%
Market Cap
€3.72 billion
Rev. per Employee
€211,656
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,787.79
-280.80 -3.97%
Volume: 135,929
Jan. 24, 2022 6:05p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,011.13
-592.75 -3.80%
Volume: 115,815
Jan. 24, 2022 6:30p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,297.15
-196.98 -2.63%
Volume: 1.01M
Jan. 24, 2022 4:56p
loading...
/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1311
-0.0015 -0.1324%
Volume: 0.0000
Jan. 25, 2022 3:14a
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Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.

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