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It really is a sign of the times, worrying in some ways, when European Travel names aren’t at the tail end of the after more terror events in Europe (Turkey, Germany, Switzerland). This coupled with a stable start for European equities confirms ever thickening investor skin to such horrors, fears of which are now rekindled with unfortunate regularity. For the moment, yesterday’s events are hardly weighing at all. The usual knee-jerk sell off on fears of a negative business knock-on for the likes of easyJet (EZJ), Ryanair (RYA), Int. Cons Airlines (IAG), Thomas Cook (TCG) and TUI (TUI) simply hasn’t materialised.
Perhaps festive travel is regarded as something which simply can’t be eschewed, meaning travellers and markets will move through and on from this latest unfortunate episode more quickly than usual. At the risk of repeating myself, the market response to each new terror event is less and less pronounced. Over the years, investors have learned to live with horror on a far too regular basis leading to faster and faster near-term recovery in the aforementioned stocks. An unfortunate juxtaposition today with more tragedy encouraging such defiance that stocks actually hold firm. Welcome to a strange new world.
Mike van Dulken, Head of Research, 20 Dec
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.
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