Indices are pushing higher in Europe and the US, though Ryanair’s warning has dragged the airlines down across Europe, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Positive tone dominates across markets
“Investors have had a weekend to digest the moves in markets last week, when a rotation to small caps finally seemed to be upon us. At present there seems to be little impact from Biden’s decision to withdraw from the 2024 election, with investors likely waiting for the first real Harris vs Trump polls to emerge. Until then, it seems a ‘business as normal’ mentality prevails, given that Trump is still riding high after the attempt on his life and the Republican convention.”
Ryanair sinks and takes others with it
“The wheels had already come off the rally in budget airlines, but today’s Ryanair news has poured fuel on the fire. A race to the bottom on prices seems underway, a scenario very different to the optimistic assumptions that had done the rounds earlier in the year. Investors will have to hope that winter bookings provide some salvation for battered share prices.”
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