Airbus And Lufthansa Shares Fall Shortly

[Gromit]

// Shares in Lufthansa and Airbus fell sharply as news broke that an A320 passenger jet operated by Germanwings had crashed in the French Alps.

Why?

[Gromit]

http://www.telegraph.co.uk/finance/newsbysector/transport/11491653/Shares-in-Lufthansa-and-Airbus-fall-following-Alps-plane-crash.html

[murraymints]

technical fault ? loss of market confidence

[-Talbot-]

Sharply?
They are only down 2.5% and 1.83% (the link is taking an age to open for me)

[Slapshot]

Be more interested in Shares in Rolls Royce or Pratt & Whitney.... the engine manufacturers.......

[237SJ]

They would do - it`s loss of conifidence, at least until the cause is established.

[Ivorlittlein]

150 People killed and all you worry about is Share Prices,I suppose it takes all sorts to make a World.!!!!

[RATTER15]

Ivorlittlein, where on earth does it say... that is all they worry about. are people not permitted to discuss another angle in you book? ridiculous!!

[-Talbot-]

I thought this was going to be a conspiracy thread.


Immediately, Airbus shares plunged. The stock went from around $60.70 to as low as $58.52, a 3.6% plunge in a matter of minutes.


that is hardly surprising and they have already recovered most of that. Not sure what the aim of this thread is to be honest.

[Prudie]

Shares apart it's rather sickening news - with it being a European plane in European skies, makes it all a bit too real.

Meanwhile AB has been verty very slow last couple of days so I suppose any thread is better than no thread.

[ToraToraTora]

Plane crash = loss of confidence, less passengers, investigation, scrutiny = company devalued. Simples!

[Peter Pedant]

The point dear Brutus.....

the company's financial data are no less strong that they were 6 h ago and some say that is the main or only deteminant of a share price

others - a majority on this thread besides the 'don't knows' says that there is a confidence element as well - that determines the share price

and so it is reasonable to ask how big the confidence element in the share price is or should be.

And for Airbus it seems to be at least 3.5%

Some people say the confidence contribution is 100% that is the share price is only determined by market sentiment and the financial data have not effect at all - they are called chartists....

I do not play the stock market

[anotheoldgit]

Ivorlittlein

/// 150 People killed and all you worry about is Share Prices,I suppose it takes all sorts to make a World.!!!! ///

I agree with you Ivor, 150 people killed and the first thoughts are regarding money, RIP all those unfortunate people, shares can recover but these poor souls cannot.

[-Talbot-]

Shares apart it's rather sickening news - with it being a European plane in European skies, makes it all a bit too real.


The planes landing in Düsseldorf fly over me everyday, I'm about 20 mins driving time from the airport, Prudie.

[Prudie]

Well that makes it even worse Talbot

[sp1814]

Gromit

I understand where you're coming from. If I read your question correctly, you're asking why the stock market can so quickly devalue shares when news stories like this happen. I don't think you're being heartless, just curious as to how and why these ripples occur.

It's an oddity of the market. When 'bendgate' happened, Apple's shares dipped for a short while, and then recovered...which I thought was weird at the time - it's not like this one event (in Apple's case) could have any serious lasting effect...but that's what the stock market does...constant correction and adjustment.