Boeing shares under pressure after Iran plane crash

Boeing shares looked set to fall at the open on Wednesday after a Ukrainian International Airlines Boeing 737-800 crashed in Iran shortly after takeoff, killing all 176 on board.

Ukraine’s embassy in Iran initially blamed the crash on engine failure but later withdrew the statement.

The 737-800 is the predecessor to the 737 Max that has been grounded since March following two fatal crashes in the space of five months.

Neil Wilson, chief market analyst at Markets.com, said: "Let’s face it, Boeing is in a fix. It’s terrible news on top of bad news. Whilst we await to see whether it really was a technical/engine problem that led to its plane crashing shortly after take-off in Tehran (I have my doubts - the timing is very, very suspect), there are few who think that the company is out of the woods. Meanwhile analysts at Cowen have taken the axe to the stock."

David Cheetham, chief market analyst at XTB, said the disaster "will once more draw unwanted attention to the firm, which was widely criticised for its response to earlier crashes in Indonesia and Ethiopia".

"The latest incident involved and older version of the 737, the bestselling commercial jet in history, than the 737 max and while it may well be totally unrelated, it will raise questions as to the safety of its operational fleet.

"When Wall Street opens this afternoon there will no doubt be additional focus on the price action in Boeing, with pre-market trade pointing at the stock beginning in the red by somewhere in the region of 3-4% and not far from its lowest level in a year."