Passengers wearing a face mask or coverage due to the COVID-19 pandemic arrive at Heathrow Airport, West London, on July 10, 2020.
Daniel Leal-Olivas / Agence France-Presse / Getty Images
Gold rose to a record high and the dollar weakened on Monday as European travel stocks plummeted.
As US lawmakers debate another round of stimulus and concerns about a stagnant economic recovery grow, gold futures GOLD,
It rose more than $ 32 an ounce. Euro EURUSD,
They were trading above $ 1.17, having been as low as $ 1.08 in May, as traders react to the new stimulus plan from the European Union and better economic data than the US.
Read more about gold futures.
“Those seeking security and a decent return have only one real option at the moment: with Treasury yields rooted near zero, and negative in real terms, and cash earns nothing. The ‘TINA’ theory, there is no alternative, is the bottom line that drives the precious metal skyward, ”said Michael Brown, Caxton senior market analyst.
The German DAX DAX,
rose while the French CAC 40 PX1,
and UK FTSE 100 UKX,
Saw small losses in early action.
Down 1.5% last week, the Stoxx Europe 600 SXXP,
weakened 0.2%.
Futures in the Dow Jones Industrial Average YM00,
112 points.
TUI TUI travel operator,
fell almost 9% and International Airlines Group IAG,
and easyJet EZJ,
each lost 8% as Britain over the weekend said it will quarantine visitors to the popular holiday destination Spain due to the increase in coronavirus cases there.
Ryanair RY4C,
which separately reported a loss of € 185 million for the quarter that ended in June that had 99% of its ground traffic, fell 7%.
“Tourism and summer activities will continue to be a risk for European investors if light measures, such as social distancing and the obligation to wear masks, do not prevent cases from increasing. Investors fear renewed blockades, although any containment measures in the near future are expected to be selective rather than a general high in economic activity, “said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
SAP SAP,
SAP,
It increased 3.6% after saying it would seek an IPO for Qualtrics, the cloud software company it bought in 2018 for $ 8 billion, as it reported a second-quarter profit boost.
AstraZeneca AZN,
AZN
was stable after saying he will pay Daiichi Sankyo Co. 4568,
up to $ 6 billion in a cancer drug business.
.
