Airline shares drag down FTSE 100 after Barcelona attack

The FTSE 100 has followed other global markets lower this morning, after the terror attack in Barcelona yesterday when 13 died after a van ploughed into a crowd.

In early trade, it was down 0.65 per cent, and shares in European airline and tourism stocks are dropping after the events in Spain.

Airline shares were among the early fallers, with EasyJet and British Airways owner International Consolidated Airlines Group (IAG) both dipping three per cent. Thomas Cook also dropped 1.28 per in early trading, while Tui and theme park operator Merlin both edged down one per cent.

Meanwhile, Intercontinental Hotel Groups was the biggest faller on Spain's Ibex index.

David Morrison, senior market strategist at Spread Co, said the news from Spain "unnerves confidence in the current febrile atmosphere".

The euro is currently up against the dollar at $1.1745 and flat against the pound.

Yesterday, 13 people died after a van was driven into crowds at Las Ramblas. The tourist hotspot has reopened to the public this morning.

This morning, Spanish police said they had killed five people in the town of Cambrils after a second similar attack to the one in Las Ramblas. Police said the men, who appeared to be wearing explosive belts though these have been confirmed as fake, were linked to the first attack.

Spain Prime Minister Mariano Rajoy has described it as a "jihadist attack", and said there will be three days of national mourning, as well as a minute's silence later on today.

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