Accor share price falls, the tourism sector worries

  •   28/01/2020 - 16h16
  •   Adeline HARMANT

Among the European values that are currently evolving the most negatively is, of course, the title of the Accor company, which is still declining today and seems to be in a lead position by fears about the coronavirus epidemic currently affecting China and indirectly the world economy and this economic sector in particular. We therefore offer you a more complete update on this news and our advice for future sessions.

Accor share price falls, the tourism sector worries
Image copyright: Kamel15 [CC BY-SA 3.0]

Accor's share price falls due to the Chinese epidemic:

It is not without reason that we are currently witnessing a general decline in the world's financial markets and the fall of certain specific stocks such as Accor shares. Indeed, while tourist operations between China and the rest of the world are increasingly disrupted every day and are expected to be disrupted to a very significant extent over the next fortnight, the markets are being very cautious and investors are fleeing certain stocks in favour of safe havens.

Clearly, the sector most affected by the measures taken by the Chinese government over the weekend to limit the spread of the coronavirus, which are likely to be prolonged, is the global hospitality sector.

However, among the stocks in this sector that are currently recording the most losses is that of the Accor group, which has fallen below the EUR 36.5 threshold, thus breaking the EUR 36.7 floor it had previously reached in October 2019. Currently, the Accor share seems to be heading towards the 34.99 euro gap it had reached in June 2019.

 

Difficulties in all European marketplaces :

Of course, France and the Accor action are not the only victims of the Chinese coronavirus epidemic, which has a global impact on all European and even global financial markets.

Today, we can see that European marketplaces are trying to resist as best they can to the sharp drop in the New York stock market, as the Dow Jones lost more than 1.6% of its value yesterday and in the face of growing anxiety on the part of investors as to the outcome of the crisis currently affecting China.

Although the CAC40 and FTSE 100 are struggling to gain 0.2%, the DAX 30 is down 0.1% today.

It should be remembered that the coronavirus now affects countries other than China, with cases in France and the United States in particular. In addition, the Chinese authorities have just extended the Lunar New Year holiday until February 2nd in an attempt to contain the outbreak.

However, we will pay more attention to certain values which are of course particularly penalised by this current situation, such as the Accor action, but also all actions in the tourism or travel sector.