Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Equities Drop And Gold Higher After Brussels Terror Attack

By CMC Markets (Jasper Lawler)Market OverviewMar 22, 2016 11:37
uk.investing.com/analysis/equities-drop-and-gold-higher-after-brussels-terror-attack-200122418
Equities Drop And Gold Higher After Brussels Terror Attack
By CMC Markets (Jasper Lawler)   |  Mar 22, 2016 11:37
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Both equity markets and the euro are lower on Tuesday after what appears to be a coordinated terrorist attack in Brussels. Belgium is now on its highest terror alert after multiple explosions in the airport and metro stations of its capital.

The latest incident in Belgium comes the day after one of the attackers from Paris was shot and arrested in Belgium. The Paris attacker was believed to be planning another attack in Belgium so if he was behind today’s attack, it will leave big questions over the effectiveness of Belgian and EU-wide counter-terrorism organisations.

Terrorist incidents are becoming more frequent in Europe, which is a travesty for those directly affected, but also makes investing in the content that much less attractive.

Currency markets were quickest to react with the Belgium attacks weighing on the euro whilst the Japanese yen received haven bids. The British pound has fallen more than the euro on heightened Brexit risk. Britons may feel safer outside of an EU which is starting to become a hotbed of terrorist activity. A smaller than expected rise in UK consumer price inflation added to sterling weakness.

The price of gold leaped over 1% amid the attacks, but later came off its highs.

The terrorist attack overwhelmed what could have been well-received positive surprises in Eurozone business sentiment surveys. The flash estimate for Eurozone manufacturing and services PMIs as well as German IFO for March beat expectations.

Leisure and tourism stocks were biggest fallers on the FTSE 100 after explosions in Brussels airports and metro stations. Airlines have seen the biggest hit because the first explosion was at Belgium’s airport. EasyJet (LON:EZJ), Ryanair (LON:RYA) and British Airways-owner IAG (LON:ICAG) all saw shares drop over 4% after the attacks were reported. TUI AG (LON:TUIT), Carnival (LON:CCL), InterContinental Hotels (LON:IHG) and Thomas Cook (LON:TCG) were all seeing heavy losses.

The explosions are bad news for airlines which have just started to see passenger demand pick up again after a slump in the wake of multiple terrorist incidents at the end of last year, including the attack on Paris. The response from authorities is likely to be another extension of security controls which make travel even less attractive for tourists.

US markets look set for a lower open as risk-off sentiments looks to cross the pond in the wake of more terrorist attacks in Europe. American Airlines shares are expected to open sharply lower since the bomb exploded near the airline’s check-in desk.

USA pre-opening levels
S&P 500: 7 points lower at 2,044
Dow Jones: 38 points lower at 17,585
Nasdaq 100: 17 points lower at 4,409

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Original post

Equities Drop And Gold Higher After Brussels Terror Attack
 

Related Articles

Equities Drop And Gold Higher After Brussels Terror Attack

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The inherent concept of such investments means that they are not suitable for the investor seeking income from such investments, and are only suitable for those who have the required experience and understand the market risks. You should carefully consider your investment objectives, level of experience, and seek advice from an independent financial advisor if you have any doubts.
Continue with Google
or
Sign up with Email