European travel and leisure firms saw around 2.6 billion euros (£1.8 billion) wiped off their stock prices yesterday as a result of the Paris terror attacks.
Investor fears that the tourist market will freeze in Europe saw falls in major London-listed travel stocks such as 3 per cent falls in Thomson holiday owner TUI and British Airways owner International Airlines Group. Cruise ship firm Carnival also fell 2 per cent.
In continental Europe, French hotel group Accor fell by more than 6 per cent, while Air France KLM tumbled 5 per cent and Eurotunnel slipped 4.5 per cent.
The falls came amid an already weak market, which slumped to a six-week low on Friday as traders worried about China’s economic slowdown, low oil prices and a possible US rate hike.
The FTSE 100 Index was just up in the afternoon, after having opened slightly down.Michael Hewson, chief market analyst at CMC Markets, said: “With the closure of France’s borders, the impact on consumer confidence could well be considerable.”