FRANKFURT (dpa-AFX): Tourism sector stocks found support on Friday amid renewed hopes for an end to hostilities in Iran. On the German stock market, this trend was led by shares of tour operator Tui, airline Lufthansa, and airport operator Fraport, which also reported strong traffic figures for May. These stocks climbed between 5% and 7%. Shares of aircraft manufacturer Airbus and engine suppliers MTU and Safran also posted significant gains.
U.S. President Donald Trump canceled strikes against Iran previously announced for Thursday evening and once again held out the prospect of a forthcoming framework agreement. "We have just reached a great deal in the war with Iran," Trump claimed at the White House. He noted that documents should be finalized shortly and could perhaps be signed in Europe as early as this weekend. Following a previous denial, Iran is now also speaking of a possible imminent conclusion to negotiations.
"Financial markets reacted with the expected optimism to news that another peace agreement between the U.S. and Iran could be imminent," wrote market expert Chris Turner of ING. Many investors took their cues from the oil market, where prices are easing significantly due to the news from the Middle East. This signals relief for the aviation industry, as fuel prices had become a major headwind in recent months.
Fraport reported on Friday that passenger numbers at Frankfurt Airport rose by 2.7% in May. Analyst Dirk Schlamp of DZ Bank emphasized that after an April heavily impacted by strikes, the airport operator is back on a growth trajectory, though also aided by the timing of public holidays and school vacations./tih/ag/jha/
