European Close: Focus on Travel and Leisure Stocks

The video discusses the resilience of the European stock market in the face of terror attacks, highlighting how industry groups like travel and leisure recover over time. It also examines the impact of terror incidents on currency markets, particularly the fall of the pound against major peers, and the flight to safety trend. Additionally, the video analyzes the bond yield spread between Germany and Spain, noting the widening difference due to falling German yields.

What is the initial reaction of the European stock market to terror attacks?

• A decline

• No change

• A slight increase

• A significant increase

How did the travel and leisure index perform after the Charlie Hebdo incident?

• It rebounded by 20%

• It remained stable

• It declined by 20%

• It increased by 10%

Which currency was most affected by the Brussels terror incidents?

• Japanese Yen

• US Dollar

• Pound Sterling

• Euro

What is the term used to describe the movement of money into safer investments during times of uncertainty?

• Flight to yield

• Flight to risk

• Flight to safety

• Flight to growth

What happens to the yield spread between German and Spanish bonds during a flight to safety?

• It becomes negative

• It narrows

• It remains unchanged

• It widens