The FTSE100 is back below 7,500 points again this morning after JPMorgan downgraded British Airways’ parent company IAG.
The airline group is the index’s biggest faller so far and JPMorgan is expressing caution about most of Europe’s big flag-carriers, given the potential for large capacity increases to bring yields down against a backdrop of low economic growth.
The investment bank is much more upbeat on low-cost airlines.
Asia-focussed lender HSBC (HSBA.L) lost 0.7 percent, while insurer Prudential (PRU.L) fell 1.4 percent.
Luxury retailer Burberry (BRBY.L) dipped 1.8 percent as Deutsche Bank reduced its price target on the stock, which dragged the personal goods sector (.FTNMX402040) down 1.7 percent.
Victoria Scholar, head of investment at interactive investor said: “China-sensitive stocks appreciate Burberry and Prudential are also trading near the bottom of the UK blue chip index after key China trade data pointed to weak domestic demand from the world’s second largest economy,”
