European markets close lower after Heathrow Airport closure

European markets closed lower on Friday, led by declines in the travel sector which was down 1.6% after the closure of Heathrow airport.

The pan-European Stoxx 600, French CAC 40 and the U.K.’s FTSE 100 all closed around 0.6% lower, while the the German DAX shed 0.5%.

The travel and leisure sector lost about 1.6% after London’s Heathrow Airport closed on Friday following a fire at a nearby electrical substation. British Airways-owner International Airlines Group was trading around 1.9% lower.

Basic resources — including stocks such as ArcelorMittal and wood pulp processor Stora Enso — were down about 2.3%.

European investors digested monetary policy updates that came from multiple central banks in the region, as well as the U.S. Federal Reserve, this week.

The Bank of Russia held its key rates at 21% on Friday, citing high inflationary pressures. On Thursday, the Swiss National Bank trimmed interest rates by 25 basis points, while the Bank of England held rates steady in the U.K. and Sweden’s Riksbank also opted not to alter interest rates.

“Since [our] previous meeting, global trade policy uncertainty has intensified, and the United States has made a range of tariff announcements, to which some governments have responded,” the Bank of England said on Thursday. “Other geopolitical uncertainties have also increased and indicators of financial market volatility have risen globally.”

It came after the Fed also kept its key interest rate steady on Wednesday. Although the central bank said it still sees two rate cuts happening this year, officials cut their 2025 economic growth forecast for the U.S. and noted that uncertainty had increased, with tariffs poised to add inflationary pressure.