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Let's take a look at some stocks on the move today. Then in Europe, I'm Stephen Carroll with Caroline Hepger, and we're joined by Bloomberg's Markets Today editor Sam Onstead. Sam, good morning. Let's start with energy stocks this morning, the likes of Shell reacting to the jump and oil prices we've seen.
Yeah, I think quite a predictable move in oil companies this morning. Oil prices up, not moving quite as much as oil prices, so the crewed at the moment up by around eight percent. Most of the big oil companies are by somewhere between four and six percent. There is obviously a knee jerk reaction to oil prices going higher. That's obviously good for the sector in the short term. The question, of course, and the question really across global markets is how how sustained is this? How long does
this go on for? But the knee jerk reaction is certainly one that's pushed it or prices up and European energy stocks to another record high.
Sam, Good morning. Meanwhile, defense starts have also reacted sharply to the news. How investors thinking about this when it comes to BAE Systems and the other big defense names in Europe.
So another similarly predictable move geopolitical and certainly an actual conflict in this case in the Middle East underpins the story that's been pushing defense stocks higher for the last four or five years. Particularly you know, obviously since Ukraine in twenty twenty two, global spending has been going up.
This will underpin that story and those companies because of that outlook, Because of this enormous increase in spending which goes out for years and years and years and gives a very strong revenue outlook for many years to come, this kind of underpins that narrative.
And of course there's also been major impact on travel as a result of the conflict that began over the weekend. What does that mean for the travel companies trading in Europe.
So it's a lot of the same questions, you know, as to how long all of this goes on for. But there are two key things happening. One is the oil price story. There's again a knee jerk reaction to higher oil prices, potentially meaning higher fuel costs and therefore weighing on margins of airlines. But probably more significant today is the effective shutdown of flights in and around particular
areas like Dubai kind of super connector airport. It's a very significant moment, a very significant challenge for the airline industry to move past. And you know, travel stocks in general, you know across Europe are falling on this news because of the impact it may well have on travel demand.
You know, you noted company like ac or, for example, the hotel company, They're down nearly ten percent today, have a slightly higher exposure to the Middle East, so that whole sector taking a pretty heavy.
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