European Stock Drop as Travel Restrictions Tighten in The Eurozone

European stocks fell on Friday, January 22nd, hit by tightening travel restrictions in the euro area and weak UK retail sales data, as investors awaited the latest batch of business activity data to gauge the pace of the coronavirus recovery.

The European Stoxx600 index fell 0.4%, but is heading for a limited weekly gain.

The shares of German Lufthansa and AirFrance fell about 2%, while the share of TUI Holiday Organizing Group tumbled 10% after the European Union proposed classifying the centres of COVID-19 Cases as high-risk areas, and travellers from these areas will have to undergo tests before departure and undergo quarantine.

Britain’s FTSE100 index fell after retail sales rebounded weakly in December, while public debt rose to its highest level since 1962.

Investors are awaiting IHS Markit’s preliminary readings of the Eurozone and UK PMI for January, which is likely to show business activity contracted compared to December due to renewed lockdown measures.