FXstreet.com (Barcelona) - Following the sudden outbreak of swine flu, risk aversion has hit European markets weighing on airlines and supporting pharmaceuticals. On FX markets, the Dollar has been bought against Euro and sold against the Yen
Eurostoxx 50 is going through losses by 1.82% with German DAX Index 1.52% down, and French CAC 1.57% down and London FTSE Index 0.62% down.
Airlines' shares have been affected as swine flu spread, and Air France KLM-Group lost 8.5%, British Airways dropped 7.3% and Air China lost 13%. On the other hand pharmaceuticals are the biggest winners of the session with Roche Holding AG growing 3.9% and Chugai Pharmaceutical Co 14% up.
Dollar rises on risk aversion
The Euro, which opened the day on a very weak tone has attempted a recovery move on European session bouncing from 1.3120 to a session high at 1.3185, although investors seems to be buying dollars as safe heaven on the back of uncertainty about the economic consequences of the swine flu outbreak. At the moment the Euro trades around 1.3140 right above 1.3120 session low.
GBP/USD dropped from 1.4772 high on Friday to 1.4515 low on Monday's Asian session and has moved between there and a session top at 1.4580 during the whole European session, at the moment, the Pound seems to be stronger than the Euro and trades near session highs at 1.4570.
USD/JPY has continued its decline from 101.45 high on April the 6th, and today the pair reached a fresh three weeks low art 96.45. At the moment the pair trades at 96.55.
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