Airlines and hotel stocks slid after multiple explosions in Brussels, leading a second day of declines in European shares.
Air France-KLM Group, Ryanair Holdings Plc and hotel operator Accor SA slipped 3 percent or more, dragging travel and leisure shares to the worst performance on the Stoxx Europe 600 Index. The benchmark fell 1 percent at 1:18 p.m. in London, paring an earlier drop of as much as 1.6 percent.
Bomb blasts rocked Brussels airport and a central subway station Tuesday, causing at least 34 deaths and dozens of injuries. Flights in and out of Brussels were canceled and security precautions were stepped up at travel hubs around Europe. While travel stocks are falling today, history has shown that such reactions tend to be short-lived.
"The stock reaction is reflecting a cautious attitude from investors after the attack,'' said Pierre Mouton, who manages about $9 billion at Notz, Stucki & Cie. in Geneva. "While it may put some investors off Europe because of the perception of increased geopolitical risk, I don't see it as weighing long term on stocks, beyond the initial reaction."
The following shares are also active after the attacks:
- Groupe Eurotunnel SE, which operates rail tunnels between England and France, slid 3.6 percent.
- Assicurazioni Generali SpA, Standard Life Plc and Axa SA are leading declines among European insurers, down at least 2.3 percent.
- Swedish firm Securitas AB, whose services include airport security, rose 2.8 percent.
The VStoxx Index of volatility expectations in euro-area shares gained 7.5 percent, trimming an earlier surge of as much as 11 percent. The volume of Stoxx 600 shares changing hands was 18 percent lower than the 30-day average, data compiled by Bloomberg show.
