Connect with us

Hi, what are you looking for?


Turkey-exposed banks, travel stocks weigh on Europe

Economic Indicators1 hour ago (Mar 22, 2021 05:45AM ET)

(C) Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

By Sruthi Shankar

(Reuters) – European stocks on Monday were weighed down by a slump in Turkey’s currency and worries about more restrictions due to rising coronavirus cases in the continent, but strength in automakers helped limit the losses.

The pan-European STOXX 600 fell 0.2%, but recouped some of the early losses.

The global mood soured as the Turkish lira plunged to a near record low after President Tayyip Erdogan replaced a hawkish central bank governor with a critic of high interest rates over the weekend.

Euro zone banks exposed to the country such as Spain’s BBVA (MC:BBVA), Italy’s UniCredit, France’s BNP Paribas (OTC:BNPQY) and Dutch bank ING fell between 0.5% and 6%.

“I don’t think it’s going to have a lasting impact on markets. Formerly when the lira spun out of control, it has had an impact on a couple of euro zone banks with exposure to the country,” CMC Markets’ David Madden said.

“It might just increase the overall risk-off sentiment. Stock markets were turning over at the back-end of last week even before this.”

European stocks saw sharp falls on Friday, easing from a one-year peak as renewed lockdowns in France and concerns over the pace of vaccination drives hit sentiment, with the European Union threatening to block exports of COVID-19 vaccines to Britain.

A British minister warned on Monday that Britons should wait before booking summer holidays abroad, pointing to rising COVID-19 infection rates in Europe.

British Airways-owner IAG (LON:ICAG), Lufthansa and Ryanair Holdings (NASDAQ:RYAAY) and travel company TUI fell between 3.3% and 5.6%.

The wider travel & leisure sector fell 1.4%, with Germany set to extend a lockdown to contain the COVID-19 pandemic into its fifth month.

However, another day of gains for automakers limited market losses, with the sector rising for a fifth day in the past six sessions.

Volkswagen AG (OTC:VWAGY) jumped 5% after Deutsche Bank (DE:DBKGn) raised its price target on the stock to 270 euros from 185 euros after the company’s ambitious plans to shift to electric car market.

British home improvement retailer Kingfisher (LON:KGF) rose 4.5% after it reported a 44% jump in full-year profit, driven by the popularity of do-it-yourself projects.

Turkey-exposed banks, travel stocks weigh on Europe

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.


Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.


Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.


Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Wise Gazette. All Rights Reserved