Thursday, July 7, 2005
Some stock markets fell sharply Thursday upon news that London was hit by a series of coordinated explosions.
The FTSE 100 Share Index fell over 150 points, over 2.8%. Among the hardest hit stocks were airlines, hospitality and insurance companies, according to reports.
At 11:41UTC, the FTSE 100 [1], the yardstick used to measure the largest British companies on the stockmarket had fallen 3.85%, dropping by 201.2 points to 5028.40. British Airways and the Hilton group lead the losers with drops of over 7% each as investors speculated about a terrorist involvement in the attacks which could adversely affect tourism and travel.In Paris the Cac 40 Index [2] of France’s forty largest companies took an even worse beating, dropping almost 4% by 11:47UTC by 170.37 points to 4109.58. Among the top losers was Axa Insurance which dropped by 5.4%.
Across the border in Germany the Dax [3] had shed 3.15%, or 145.47 points, by 11:50UTC to 4470.02 points. Again among the top losers was a major insurer – Allianz which fell over 5%.
It seems that airlines and insurers have been hit the worst so far. Ryanair has dropped 7.73% or over €400m in value and easyjet has shed 7.28%.
Shortly after news of the explosions spread to trading floors, shares of British Airways fell more than 6 percent. Other stocks affected included Carnival Corporation, InterContinental Hotels Group, Hilton Group, and Prudential.
The FTSE had recovered 116 points at 13:43 after it’s initial fall of 206. Increased volume of FTSE futures on LIFFE has meant that many people have been able to profit from the fall.
The price of gold has jumped by 1% as investors seek a secure place for their money.
United States markets have fallen significantly as well, with the Dow having fallen by 65 points, the S&P 500 7.57, and the NASDAQ 7.51 as of 13:43UTC.