Thomas Cook Hits Turbulence

Friday, February 8: Following their weakest day in six week on the back of uninspiring economic data, European indices once more found themselves on the back foot as investors digested weak earnings on the continent. The FTSE 100(-0.32%) found itself in the green early on, though the relief rally fizzled out by lunch as a range of financial, engineering and travel stocks weighed on the primary index.

Thomas Cook Group(-12.23%) also found its fortunes reversed, despite no new news in the market. Only yesterday the Group rallied higher as it announced to the market that it was conducting a strategic review of its airline business after reporting widening losses in Q1. Investors and brokers bought into the strategic rationale it seems…’til today. The stock fell markedly as broker Morgan Stanley issued a bearish note citing concerns with respect to the strategic uncertainty a disposal may cause and earnings dilution, spooking investors.

At the close European equities were lower, with the FTSE 100 -0.32%, the CAC 40 -0.48% and the DAX 30 -1.05%.

Leave a Reply