Au revoir to French trips slows FTSE

Market report

The FTSE 100 and Europe’s other largest markets dived into the red as the UK’S decision to remove France from its travel corridor hit sentiment.

Travel firms slid in value after the restrictions were announced, as it raised broader concerns over the impact of the virus. British Airways owner IAG was the heaviest faller of the day as UK holidaymakers cancelled plans to cross the Channel.

London’s top flight closed 95.58 points lower at 6,090.04. Connor Campbell, financial analyst at Spreadex, said: “There were numerous reasons why investors were feeling a bit angsty this Friday. Covid-19 has lurched back into the spotlight, sparking a wave of worry about the cost of the crisis.

“Though markets shook off the week’s – admittedly long-teased – second-quarter GDP contraction in the UK, a worse-thanforecast Chinese retail sales reading seemed to pose more of a problem for traders.”

The French markets were also particularly affected by the quarantine announcement, while global markets were kept low by concerning economic figures from China. France’s Cac moved 1.58 per cent lower.

Meanwhile, sterling finished the week on an upbeat note, lifting while the euro slipped back after employment data for the second quarter showed the eurozone had lost half of the jobs it had created since the financial crisis. The pound rose 0.26 per cent versus the US dollar at $1.310 and was up 0.1 per cent against the euro at €1.107.

Oil firms and engineering firms also drifted

lower as they were weighed down by concerns over the continued impact of the virus on global travel.

In company news, Hollywood Bowl’s shares closed up 22.5p at 162.5p after bowling alley operators were given the green light to reopen after months of lockdown.

Elsewhere, shares in Glasgow-headquartered fashion retailer Quiz, which has been hammered by the lockdown, closed 1.04p up at 7.25p after it secured an increase and extension to its existing loan facilities from lender HSBC.

Easyjet closed 40p lower at 570.8p after it sold 23 planes to a subsidiary of China’s fifthlargest bank, netting around £608 million in proceeds. It was also affected by wider concerns affecting the travel sector.