USA stocks opened lower.
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UP WITH DEFENSE: Investors bid up shares in several defense contractors. Travel-related stocks were down.
KEEPING SCORE: The Dow Jones industrial average rose 78 points, or 0.5 percent, to 17,323 as of 12:07 p.m. Eastern Time. Economists polled had forecast a 0.2 percent contraction. The Nasdaq composite index slipped 77.20 points, or 1.5 percent, to 4,927.88.
Michael Hewson, chief market analyst at CMC Markets, said: “While not wanting to second-guess the effect of the events of the weekend, the closure of France’s borders, along with other security measures, the impact on consumer confidence could well be considerable in the coming days and weeks”.
Eight armed terrorists, many of them rigged with explosives, staged several coordinated attacks. “That might be the case if you saw a series of these things, but hopefully that’s not what’s going to happen and the economy is not going to be affected”. “The small upside we’re seeing in the S&P 500 is reflective of that”.
Even still, Japan’s central bank is unlikely to announce more stimulus at the end of a policy meeting this week, Marcel Theliant of Capital Economics wrote in a research note.
European stocks are expected to tumble 2 per cent Monday continuing a downward streak that began on Friday amid speculation about a US Federal Reserve rate hike in December.
Across in Asia, markets mostly fell. If completed, the deal would make Marriott the world’s largest hotelier by a wide margin. Starwood slid $3.70, or 4.9 per cent, to $71.29.
European shares were also helped by encouraging updates from companies such as the world’s second-biggest recruitment company Randstad and Germany’s United Internet.
Spot gold added about 0.5 percent to $1,089.51 an ounce, moving away from its low on Thursday of $1,074.26, which was its deepest nadir since February 2010. The rule change means that investors with 1 million yuan in their account are limited to borrowing another 1 million yuan from a broker to buy more shares. Delta Air Lines lost $1.67, or 3.4 per cent, to $47.34.
The FTSE 100’s travel and leisure stocks came under significant pressure when European stock markets open this morning. Carnival fell $1.39, or 2.7 percent, to $50.18.
Emerging market stocks lost almost 1 percent.
The markets later recovered some poise – supported by news that inflation returned to the euro area last month – rising at an annual rate of 0.1% compared to a -0.1% reading in September. It was down 0.5 percent against the yen at 131.24 yen.
MSCI’s broadest index of Asia-Pacific shares outside Japan earlier rose 1.7 percent, taking its cue from a surge on Wall Street and bouncing from a six-week low struck the previous day on risk aversion.
S&P 500 futures were down 0.7 percent, after shedding about 1 percent in light volume in late trading on Friday. And a barrel of benchmark NY crude oil was up 2.5 percent at $41.76 a barrel.
Internationally traded Brent crude futures LCOc1 rose towards $44.80 before dropping back to $44.59 a barrel.
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Investors sought out the safety of government bonds after the deadly attacks that killed at least 129 people in Paris and the country enters a three-day state of emergency.
