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London open: Stocks slide after terror attack in Nice
London stocks were under the cosh on Friday following a terror attack in Nice that has left at least 84 people dead, sending travel and leisure stocks into the red.
A truck was driven into crowds celebrating Bastille Day in Nice, in what President Francois Hollande called an attack of “an undeniable terrorist nature”. Shares in International Consolidated Airlines and easyJet fell on the news.
“The lower open comes despite some more positive economic data from China including a growth rate of 6.7% year-on-year in the second quarter. Chinese industrial production and retail sales growth for June also grew at faster rate than expected,” said CMC Markets’ Jasper Lawler.
China’s gross domestic product growth of 6.7% was better than the 6.6% analysts had been expected and was in line with the previous quarter’s growth. The government is targeting an annual GDP between 6.5% and 7% for this year.
Still to come, the final estimate of June eurozone inflation is due at 1000 BST, US inflation for June comes at 1330 BST, US retail sales will be released at 1330 BST, industrial and manufacturing production at 1415 BST, University of Michigan’s consumer confidence index at 1500 BST and business inventories at 1500 BST.
Meanwhile, any developments in new Prime Minister Theresa May’s government will be closely monitored as well as any plans for Britain’s exit from the European Union.
Company-wise transport operator FirstGroup slumped after saying first quarter revenue decreased by 1.4% in constant currency, with revenue growth in First Student, First Transit and First Rail offset by decreases in First Bus and Greyhound.
Banking stocks continued to rally, including Royal Bank of Scotland, Lloyds Banking Group and Barclays, after the Bank of England decided to keep interest rates unchanged to the surprise of economists who had expected a rate cut.
