Travel ban: Share markets hit heavily, airlines sustain worst damage
US stocks sustained a heavy blow overnight on Monday as a result of Donald Trump’s controversial travel ban. The Dow Jones Industrial Average slumped by as much as 100 points – the worst fall since the US presidential elections. The Australian market also received its share of downfall. As of 7AM, the share price futures index fell 12 points at 5,5591.
This comes on the heels of the Dow crossing 20,000 and reaching record levels last week. Among the sectors worst affected by the travel ban were airlines and technology firms. Financial shares also suffered in the wake of the ban, which denied people from seven Muslim-majority countries entry to the US.
It was Dow Jones Industrial Average’s biggest fall since Oct. 11. The blue-chip index sustained a fall of 123 points, or 0.6 per cent. The S & P 500 fell 0.6 percent and the Nasdaq Composite fell 0.8 percent.
Markets in London dropped by 0.9 percent while Frankfurt and Paris dropped by 1 percent. “Global indices have started on the back foot after US President Trump announced one of his most radical policies yet, in the form of a travel ban,” CMC Markets analyst Michael Hewson said.
Meanwhile, Prime Minister Malcolm Turnbull announced that Australia was exempted from the travel ban. The development comes following a conversation with Joe Hockey, Australia’s ambassador in Washington. “Our ambassador has just called me to say that he's had confirmation from the White House that Australian passport holders regardless of their place of birth or whether they are dual nationals or whether they hold another passport will remain welcome to come and go to the United States in the usual way,” Turnbull said, speaking with Sky News.
Airlines were hit the heaviest. On Monday, shares of Delta slumped by 4.1 percent to $47.67 in New York. American Airlines dropped by 4.4 percent to $44.90. United Continental Holdings was down by 3.6 percent to $71.72. The downfall comes in the wake of Trump’s travel ban, which caused confusion and turmoil across US airports over the weekend. People travelling from any of the seven countries listed on the travel ban, including refugees and those holding green cards, were denied entry to the US.
According to AAP (via Courier Mail), the Australian dollar was higher than the US dollar - trading at 75.52 US cents at 7AM. On Monday, the same stood at 75.49 US cents.
Australia’s S & P/ASX 200 suffered its worst slump this year – dropping by 0.9 percent. Meanwhile, Stoxx Europe 600 fell by 1 percent, marking its biggest drop since Nov. 2. Banks, energy and insurance companies were most affected.
