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MarketPulse Europe: Plunge in Thomas Cook Leads Travel Stocks Lower

Published 27/11/2018, 11:46
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Investing.com - A plunge in tour operator Thomas Cook weighed on travel and leisure stocks in European midday trade on Tuesday.

The pan-European Stoxx 600 Travel & Leisure index was down by more than 1% by 6:45AM ET (1145GMT) to reach the lowest since November 2016.

Shares in Thomas Cook Group PLC (LON:TCG) plunged as much as 31% to levels not seen since 2012 after the travel firm slashed its profit forecast and suspended its 2018 dividend.

The company had already lowered its profit guidance in September, blaming the hot weather which hit its UK business particularly hard.

It was last trading down around 23% in London.

The warning also had an impact on shares of rivals Tui AG NA (LON:TUIT), which fell about 4%.

Airliners were also weaker across the board in the wake of Thomas Cook's worrying outlook.

Ryanair Holdings PLC (LON:RYA) and EasyJet PLC (LON:EZJ) lost 1.6% and 1.1% respectively, while Lufthansa AG (DE:LHAG) was off by 1.2% in Frankfurt.

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