European shares slip on Iraq unrest

European stock markets closed in the red on Friday, with airlines hit hard by higher oil prices caused by spreading unrest in Iraq. London’s FTSE 100 index of top companies sank 0.95 per cent to close at 6,777.85 points, weighed down also after Bank of England governor Mark Carney hinted at a rate hike sooner than expected. Frankfurt’s DAX 30 ended the week down 0.26 pc to 9,912.87 points, and the CAC 40 in Paris slipped 0.24 pc to 4,543.28 points. Brent oil soared to a nine-month high at $114.69 a barrel, as investors fretted over spreading unrest in crude producer Iraq, traders said. And gold hit a two-and-a-half week peak at $1,277.65 per ounce, as investors sought a safe-haven investment. Traders noted that soaring oil prices would translate into rising costs for consumers and companies alike. Alpari trader Craig Erlam said: ‘This will be disruptive to say the least, not just to the consumer who will see disposable income take yet another hit as they are forced to pay higher prices at the pump, but also to companies that rely on oil and gas.’ The share prices of airlines fell particularly sharply on Friday on the back of rising oil prices. German airline Lufthansa topped Frankfurt’s fallers board, with its shares tumbling 3.44 percent to 16.27 euros. International Airlines Group, parent of British Airways and Iberia, saw its share price slide 3.12 percent to 379 pence in London. And no-frills rival easyJet dived 2.93 percent to 1,457 pence. On the London Bullion Market, gold later stood at $1,273.00 an ounce, up from $1,265.75 late on Thursday, according to AFP.