Airlines’ inventories rose on Tuesday as the European Union welcomed foreign tourists to the region. This is a sign that normal travel and tourism conditions can resume if the COVID-19 vaccinations continue to spread.
Shares in British Airways owner IAG
IAG, + 2.02%,
AF, + 0.98%,
LHA, + 2.90%,
RYA, + 0.33%,
EZJ, + 2.99%,
and Wizz Air
were among the biggest movers in European trade as hopes rose for a recovery in the travel industry, which has been badly hit by the COVID-19 pandemic. Shares in large Accor hotel groups
AC + 1.10%
and InterContinental Hotels Group
On Monday, the EU executive recommended easing travel restrictions to allow tourists from more countries to enter the 27-person bloc.
According to the proposal of the European Commission, people who have been fully vaccinated against COVID-19 with an EU-approved vaccine or who come from a country with a “good epidemiological situation” are welcome in the region. The EU has approved Pfizer vaccines
PFE + 3.05%,
MRNA, + 4.03%,
AZN, + 1.19%,
and Johnson & Johnson
JNJ, + 1.52%.
“Time to resuscitate [the EU’s] Tourism industry and for the revival of cross-border friendships – sure, “said the President of the European Commission, Ursula von der Leyen, on Twitter
“We suggest welcoming re-vaccinated visitors and those from countries with good health.”
“But if variants emerge, we have to act quickly: we propose an EU emergency braking mechanism,” she added. Currently, visitors from only seven countries with low infection rates can enter the EU for no essential reasons.
Travel stocks boosted European equity markets, which were mixed on Tuesday. The Europe-wide Stoxx 600
was just under flat while London’s FTSE 100
UKX, + 0.47%
Index was 0.5% higher. The CAC 40
PX1 + 0.18%
in Paris the Frankfurt DAX rose by 0.2% and the Frankfurt DAX
was 0.6% lower.
Dow Industrials Futures
pointed down 25 points, betting a gentle open after rising 238 points on Monday to close at 34,113.
The broad display of economic optimism sparked by the decreasing severity of the COVID-19 pandemic in many countries continues to drive inventory levels higher.
“The trigger for this recent surge is the gossip about a commodity super cycle with higher oil companies and miners, as well as continued optimism about the reopening of the world economy,” said Russ Mold, analyst at AJ Bell.
Together with airlines, metals and mining stocks contributed shares of Rio Tinto to stock market gains in Europe
RIO + 2.11%,
BHP + 2.52%,
AAL, + 1.58%,
ANTO, + 0.51%,
GLEN, + 2.13%,
FRES, + 4.25%
Large listed oil companies in Europe joined the Commodities Party and, with stakes in BP, were among the other big climbers in Europe
BP, + 2.39%,
Royal Dutch Shell
RDSA, + 2.55%,
UP TO + 2.26%,
ENI + 1.37%
Shares in the semiconductor group Infineon
fell near 4.5%, though The chip maker raised its forecast for sales and margins for the current financial year. The group said it faced some supply shortages following the temporary shutdown of one of its Texas factories.
Online food supplier HelloFresh
was another force hurting European markets: the stock fell nearly 4.5%. according to the Group’s quarterly results. The group confirmed the sales growth and adjusted earnings announced in April.