European Markets Recover After Brussels Attack

Lucy Stoeva
22 Mar, 2016
New York City

European market indexes closed flat after the sharp decline in the aftermath of the terrorist attacks in Brussels. Eurozone economic activity regained momentum in March. PMI. Partners increased its dividend.

[R]4:00 PM Frankfurt, Germany – European market indexes closed flat after the sharp decline in the aftermath of the terrorist attacks in Brussels. Eurozone economic activity regained momentum in March. PMI. Partners increased its dividend.[/R]

European financial markets fell sharply in the morning after multiple explosions at multiple locations in Brussels.

However, positive economic data helped stock markets recover and close nearly unchanged.

Terrorist attacks at Brussels airport and a metro station killed at least 26 people and injured more than 100. The events paralyzed the capital of the European Union and raised security questions across cities in Europe.

The explosions are speculated to be a response to the arrest of Salah Abdeslam, a suspect in Paris attacks in November 2015.

Travel and tourism related stocks led the decliners in the session but the latest explosion may affected broader market in the next few days of trading.

Hotel chain operator Accor SA tumbled 4.7% and tour operator TUI lost 3.6%.

Among airlines, Air France-KLM fell 3.7%, low-cost airline Ryanair dropped 2.5%, and Deutsche Lufthansa erased 1.5%.

The euro fell 0.27% against the dollar to $1.1212 and was down 0.5% against the Japanese yen to ¥125.4840.

Positive economic news, however, helped equity markets to recover from earlier losses.

In Germany, business sentiment improved in March to 106.7 from 105.7 in February, according to a private survey conducted by Ifo Institute.

In addition, eurozone economic activity regained momentum in March, according to composite purchasing managers’ index tracked by Markit, which rose to 53.7 from 53 in February.

The flash eurozone services PMI reached a three-month high to 54.0 in March, compared with 53.3 in February.

At close after volatile sessions across Europe, the FTSE 100 declined 0.13 to 6,184.45, the DAX index inched down 11.20, or 0.1%, to 9,937.44.

In Paris, the CAC 40 index fell 16.64, or 0.36%, to 4,111.16 and Bel-20 index in Brussels dropped 80.35, or 2.23%, to 3,527.57.

Partners Group Holdings jumped 7.3% to 402.5 Swiss francs after the investment management firm increased its dividend and reported strong revenue growth.

2015 revenues increased 8% to 619 million francs despite foreign exchange headwinds.

The private markets investment company proposes a dividend of 10.50 Swiss francs per share.

Thomas Cook Group Plc tumbled 4.3% to 88.55 pence despite confirming its guidance.

The travel-services company said market conditions “remain challenging” and the tour operator said it is avoiding flights in Turkey, Tunisia and Egypt due to recent terrorist attacks.