FTSE dips as travel stocks fall

After hitting a 22-month high, the FTSE has dipped 10 points at 7410.

Travel stocks fell as Omicron case numbers continue to grow, with IAG being the top faller and dropping 2%. Flutter was down 1.4%, Entain was down 1%, whilst BT fell 1.6%.

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Travel stocks have continued to fall this week due to Omicron cases and bad weather cancelling flights.

 Flight-tracking website FlightAware.com found that over 1,000 flights were canceled within, into, or out of the United States were cancelled just on Monday.

The FTSE hit a 22-month high yesterday, briefly hitting 7,457.14.

Spreadex expert Oliver Males commented at the time: “The FTSE is currently up … as continued optimistic news regarding the new variant is released, such as Boris Johnson announcing that there will be no further restrictions imposed, due to the low severity of Omicron,”

“However, the same cannot be said for the rest of Europe as both the Dax and Cac dropped today, after most of Europe sees a ‘tsunami’ of cases, with France recording over 200,000 cases in the past 24 hours.

“This has in turn led UK travel stocks lower, such as IAG being down over 2%, and holiday operator, TUI, in the red by over 5%.

“Many experts are expecting the Omicron variant to have its real effect in 2022, as inflation is likely to soar, leading to rising interest rates, while the international supply chain is still going to be heavily disrupted.”

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