This is CNBC’s live blog covering European markets, dear reader.
In the realm of the European bourses, a certain melancholic air descended on Friday. Travel equities led the dismal dance lower.
The pan-European Stoxx 600 felt a pinch, declining by 0.8%. Across the Channel, the FTSE 100 saw a fall of about 0.6%. Our French cousins observed a 0.7% slip in their CAC 40, whilst our German friends witnessed a near 0.9% dip in the DAX.
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Heathrow airport closure hits stocks
A fire at an electrical substation caused Heathrow Airport’s closure, stirring quite the commotion. Affected were numerous flights at the bustling Heathrow, generating turbulence for travel stocks, including these notable shifts by 8:45 a.m. London time:
- International Airlines Group dropped 3.5%
- EasyJet descended by 2.1%
- Lufthansa found itself 2.3% lower
- Air France declined by 2.8%
- Intercontinental Hotel was down 2.5%
“British Airways owner International Airlines Group found itself struggling, trading about 2.3% lower by late morning,” noted Katrina Bishop.
Power outage causes disruptions at Heathrow
Heathrow Airport had quite an unfortunate event, closing its doors due to a substantial power outage. A nearby electrical substation fire was the root of this dramatic halt.
“Heathrow is currently profoundly disrupted by a power outage,” stated a spokesperson. “This follows a substantial fire at a neighbouring substation. While our valiant fire crews tackle the blaze, returning to full functionality remains uncertain.”
“Heathrow’s considerable disruption is expected to persist,” the spokesperson added. “We implore passengers to refrain from travelling to the airport until it safely reopens.”
Closure is anticipated until at least the stroke of midnight on Friday. More details can be found in the full story here.
— Contributions to this tale by Leslie Josephs and Monica Pitrelli.
Economic and stock market overview
Monetary policy updates flowed from both sides of the Atlantic. The Swiss National Bank took steps, trimming interest rates by 25 basis points. Simultaneously, The Bank of England and Sweden’s Riksbank saw fit to maintain status quo with their rates.
“Global trade policy uncertainty has ramped up since our previous chats,” quoth The Bank of England. “New tariffs by the United States elicited responses worldwide. Additional geopolitical uncertainties are afoot, stirring financial markets with increased volatility.”
Across the pond, the US Federal Reserve maintained its key interest rate. However, a hint lingered on the wind of two prospective cuts this year.
The previous day, European equities snapped a charming four-day winning streak with a 0.4% drop in the Stoxx 600. Yet, a breeze of optimism still flutters. The index is poised for a weekly gain, already up nearly 9% since the year’s commence.
As daylight broke in Asia, markets displayed a mixed palette, tinged by persisting economic anxieties. Meanwhile, Wall Street’s futures seemed poised for a decline post the notably broad selloff of Thursday.
Opening calls
Meanwhile, as we eye the open, IG anticipates little movement for the FTSE 100. In contrast, expectations are set for Germany’s DAX index to retreat by 0.6% and France’s CAC 40 to drop by half a per cent.
— Insights by Chloe Taylor.
Note: Here’s to a brighter Monday!
