Souring sentiment, geopolitical risk push Europe's travel stocks to June lows

Accor SA

18/11/2025 09:43

** Shares in European travel companies slip on Tuesday amid a broader risk-off mood across global markets and geopolitical tensions

** STOXX 600 travel & leisure .SXTP index falls 1.8% at 0938 GMT to its lowest since June

** AJ Bell investment director Russ Mould points to tensions between between China and Japan, and worries over diminishing prospects of an imminent interest rate cut from the U.S. Federal Reserve

** "Currently we believe there are rising concerns with regard to consumer sentiment and geopolitical risks, which explains the strong reaction," Oliver Wojahn from mwb research says

** Germany's TUI TUI1n.DE is down around 4%, leading losses on the index, followed by French hotel group Accor ACCP.PA, Ryanair RYA.I and British Airways owner IAG ICAG.L, which all slip around 2%

** "TUI is a high beta stock, i.e. magnifies market movements due to its significant debt load and capital-intensive business model. Any macroeconomic concern thus leads to relatively strong share price movements," Wojahn says

(Reporting by Paolo Laudani in Gdansk)

((Paolo.laudani@thomsonreuters.com))