Geopolitical tensions dent European shares; airlines extend fall

lunes 16 de junio de 2014 10:14 GYT
 

* FTSEurofirst 300 down 0.2 pct, Euro STOXX 50 down 0.3 pct

* Violence from Iraq to Kenya fuels profit taking

* Airlines, cruise operators among worst hit as oil surges

* Actelion jumps 14 pct on positive results for Selexipag

By Francesco Canepa

LONDON, June 16 (Reuters) - European stocks edged lower on Monday, adding to last week's retreat as mounting violence from Iraq to Kenya pummelled travel shares and prompted investors to cash in on recent outperformers.

Airlines and cruise operators such as Carnival and easyJet both fell more than 1 percent as Brent crude rose to near $113 per barrel on concerns over disruptions to oil exports from Iraq, the second-largest OPEC producer.

Sunni Islamist insurgents have routed Baghdad's army and seized the north of the country, threatening to dismember the state and unleash all-out sectarian warfare across a crescent of the Middle East.

While airlines tend to lock in prices for their immediate fuel needs using financial derivatives known as hedges, higher oil prices in the coming months would affect their profits from next year.   Continuación...