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News of multiple explosions in Brussels this morning, two at its main Zaventem international airport and now more on the city’s metro network, have rocked financial markets. No surprise to see European airlines and Travel shares being offloaded while Gold and the Yen benefit from fresh safehaven seeking. Investors will be fearful of the knock-on to European traveller sentiment which was dented in the wake of the Parisian attacks last November (as well as those in Tunisia and Egypt). This has hit the likes of easyJet (EZJ), Ryanair (RYA), Thomas Cook (TCG), TUI, and Eurotunnel (GET) amongst others.
While details are yet to be confirmed, the fear is that the explosions relate to yet another coordinated terror attack, echoing that of Paris, with reports of multiple fatalities and injures. It’s always a sad day when terrorism has to be the driver to kick markets from their state of calm. It’s also a sign of times when the market response is – in relative terms – so muted. Investors have had to develop a thick skin for such horrific events over the years and their encouraging defiance may again result in near-term recovery for the stocks affected.
Mike van Dulken, Head of Research, 22 Mar
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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