LONDON MARKETS: Travel Stocks Slide In London Amid Ebola Scare

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Travel stocks dragged the FTSE 100 index lower again on Wednesday on fears that the spread of the deadly Ebola virus will hamper tourism businesses.

The London benchmark dropped 0.2% to close at 6,482.24, setting it on track for a second straight day in the red.

Posting some of the biggest losses in the index, TUI Travel PLC lost 3.9%, easyJet PLC fell 0.8%, cruise operator Carnival PLC shaved off 1.3% and British Airways parent International Consolidated Airlines Group SA (ICAGY) dropped 0.7%.

Travel stocks also recorded large declines on Tuesday, after a Spanish nurse was the first person outside West Africa to de diagnosed with Ebola. Looking at previous pandemics in relation to travel trends, the European Commission has concluded that the sharp decline in tourism in 2003 was partly linked to a Sars outbreak.

Among other decliners in London on Wednesday, Rio Tinto PLC (RIO) fell 1%. The mining giant rose 0.8% on Tuesday after it was confirmed that rival Glencore PLC approached Rio Tinto about a possible takeover earlier in the year. Rio Tinto rebuffed the deal, and Glencore said it is no longer actively considering a merger. Glencore shares lost 1.3% on Wednesday.

On a more upbeat note, shares of Tesco PLC climbed 1.4% after HSBC lifted the supermarkets firm to neutral from underweight.

Outside the main index, shares of London Mining PLC tanked 76% after the mining company said "there will be little or no value remaining in the equity," after talks with potential investors failed to help.

In data news for the U.K., a survey from building society Halifax showed house prices in the U.K. continued to rise in September but at a slower pace

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