Airlines’ stocks rose on Tuesday as the European Union moved to welcome foreign tourists to the region, a sign that more normal travel and tourism conditions may resume as COVID-19 vaccinations worsen. generalize.
Shares of the owner of British Airways IAG UK: IAG,
Air France-KLM FR: AF,
Lufthansa XE: LHA,
Ryanair UK: RYA,
EasyJet UK: EZJ,
and Wizz Air UK: WIZZ
were among the main increases in European trade, as hopes of a recovery in the travel industry, hard hit by the COVID-19 pandemic, grew. Actions in major hotel groups Accor FR: AC
and InterContinental Hotels Group UK: IHG
On Monday, the EU’s executive arm recommended easing travel restrictions to allow tourists from more countries to enter the 27-member bloc.
Read more: EU proposes to reopen external borders as vaccination campaigns accelerate
According to the European Commission proposal, people who have been fully vaccinated against COVID-19 with an EU-approved vaccine or who come from a country with “a good epidemiological situation” will be welcome to the region. EU approved Pfizer PFE vaccines,
and Johnson & Johnson JNJ.
“It’s time to relive [the EU’s] tourism industry and for cross-border friendships to revive – safe, ”said European Commission President Ursula von der Leyen via Twitter TWTR.
“We propose to welcome once again visitors who have been vaccinated and those coming from healthy countries.”
“But if variants emerge, we must act quickly: we are proposing a European emergency braking mechanism,” she added. Currently, visitors from seven countries with low infection rates can enter the EU for non-essential reasons.
Travel documents bolstered European stock markets, which were mixed on Tuesday. The pan-European Stoxx 600 XX: SXXP
was just below the dish while London’s FTSE 100 UK: UKX
the index was 0.5% higher. The CAC 40 FR: PX1
in Paris climbed 0.2% and Frankfurt’s DAX DX: DAX
was 0.6% lower.
Dow Industrial Futures DJIA FUTURES
were pointing down around 25 points, set for a soft open after rising 238 points on Monday to close at 34,113.
The broad rhetoric of economic optimism motivated by the waning severity of the COVID-19 pandemic in many countries continues to drive up stocks.
“The catalyst for this latest hike is the chatter about a commodities supercycle with oil companies and miners higher up as well as continued optimism about the reopening of the global economy,” said Russ Mold, analyst at AJ Bell.
Along with airlines, metals and mining stocks contributed to stock gains in Europe, with stocks in Rio Tinto UK: RIO,
BHP UK: BHP,
Anglo American UK: AAL,
Antofagasta United Kingdom: ANTO,
Glencore UK: GLEN,
and Fresnillo UK: FRES
Large listed European oil companies joined the commodities group and were among the other big increases in Europe, with shares in BP UK:,
Royal Dutch Shell UK: RDSA,
and Eni IT: ENI
Shares in the Infineon XE semiconductor group: IFX
fell nearly 4.5%, despite the chipmaker raising its forecast for revenue and margins for the current year. The group said it was facing supply constraints following the temporary closure of one of its factories in Texas.
HelloFresh XE online meal kit supplier: HFG
was another force that weighed on European markets, with the stock falling nearly 4.5% following the group’s quarterly results. The group confirmed the growth in turnover and operating profit that it had announced in April.