UK terror plot expected to pull down Wall Street

The London stock exchange reacted to news of a thwarted terror attack on ten US aircraft today by plunging more than 81 points (1.4 percent) to 5779 this morning.

Wall street is expected to follow suite with US airline and other travel related stocks expecting to follow European stocks downward.

Whilst the current threat has been thwarted, with 20 people arrested so far, there are still fears that a smaller ‘parallel’ operation may be in place, which intelligence may know nothing about.

Certainly on previous occasions the attacks have tended to come in waves, with so called ‘spectacular’ terrorist events inspiring smaller scale less well organised attacks later. These ‘copy cat’ attacks are much more difficult for security sources to track and monitor.

Stocks in all areas of the tourism and travel trade are expected to be hit as the USA hits peak summer holiday season. Many Americans are expected to delay or cancel flights and holidays in view of the threat, with the subsequent knock on effect in the industry.

Shares across all the main markets in Europe where hit by the news.