UK adds no new countries to its green travel list
During yesterday's session, the UK announced that for the time being it will not add new countries to its so-called "green list" of countries and destinations considered safe when travelling due to the Covid-19 pandemic.
This list began to be published after the United Kingdom began allowing its citizens to travel abroad, with the UK government categorising countries into three lists, following the simple operation of a traffic light. Through the list, British citizens can see if they can travel freely or with restrictions, depending on the epidemiological situation and the vaccination process. The travel list is updated every three weeks.
The countries on the green list are those where British citizens can travel without any restrictions. Currently on the green list we can find the following countries: Australia, Brunei, Falkland Islands, Faroe Islands, Gibraltar, Iceland, Israel, New Zealand, Portugal, Singapore, George and South Sandwich Islands, Saint Helena and Ascension Island.
If we focus more closely on the list, we notice a curious trend. Indeed, many of these destinations are members of the Commonwealth or British territories, while most of the major and popular European destinations of the English, such as Spain, Italy, Greece and France are excluded. The exception to this was Portugal, but the country will now be removed from this list, instead moving to the amber list, despite hosting the final of the Champions League in Lisbon last week, which featured two English teams.
This decision has had a significant impact on the European tourism sector, as it was expected that the new update would in fact include several new destinations, rather than a decrease in green countries. As a result, there was a general decline in yesterday's session, in terms of the tourism sector in the financial markets.
Specifically, companies IAG, Lufthansa, Air France-KLM, EasyJet and Ryanair had declines of 4.82%, 3.52%, 4.64%, 5.08% and 4.52% respectively during Thursday’s session.
If we focus on IAG, the holding company formed by British Airways and the Spanish Iberia, it has been one of the companies that has weathered the pandemic storm the best during the last months. This is largely thanks to the significant volume of liquidity that it had during the past year, and partly due to its good position in the sector and the capital increase that it made during the month of September. However, in the stock market, its price is still quite punished despite to the good future prospects, thanks to the good pace of vaccination, although after yesterday's decision, the final take-off may be delayed.
If we look at the daily chart, we can see how this company, after marking lows, began an uptrend that has led it to perform two strong sideways similar price consolidation patterns after experiencing a strong rebound.
The first of these side ranges was surpassed in February, where the price was finally able to overcome the high band of that channel after exceeding 200 GBX per share and its average of 200 sessions. Following that move, the price again began another sideways move between the March highs and an area near the upper band of the previous channel acting as the main support level.
A possible bullish trigger could be the possible inclusion of Spain and other countries to the UK green list within the next three weeks, which could lead to a bullish break of this new channel, opening the doors to a strong momentum that could take the price to levels not seen since last summer, thus confirming the change of trend.
Source: IAG daily chart of Admiral Markets' MetaTrader 5 platform from March 17, 2020 to April 26, 2021. Held on April 26 at 13:00 hours CET. Note: Past performance is not a reliable indicator of future results or future performance.
Evolution of the last 5 years:
- 2020: -61,40%
- 2019: 1,20%
- 2018: -5,07%
- 2017: 47,65%
- 2016: -27,78%
With the Admirals Trade.MT5 account, you can trade Contracts for Differences (CFDs) of IAG, Air France-KLM, Lufthansa and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.