“I don’t want to say that we have got used to these things, but the markets have learnt to realise that the attacks tend to have very limited impact upon the economy and markets”, Commerzbank economist Peter Dixon said.
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In NY, stock prices dropped starting on Friday night. It could shed as much as 100 points, or about 1.5 per cent, in early Monday trading.
The events in Paris are likely to put consumer goods and tourism stocks under pressure in the short-term, although few strategists expect a prolonged economic impact or change in prevailing long-term market directions.
Trader John Panin, center, works on the floor of the NY Stock Exchange, Monday, November 16, 2015.
The CAC 40 In France – along with its major European counterparts – all fell in early trading on Monday as investors digested the consequences for the economy not only in France but across the world. Telecommunications companies were among the biggest gainers.
Still, some airline shares fell sharply on the expectation travelers might curb their plans to fly.
The Dow Jones industrial average rose 39 points, or 0.2 percent, to 17,285 as of 10 a.m. Eastern Time.
The Standard & Poor’s 500 index rose eight points, or 0.4 percent, to 2,031.
The dollar rose 0.1 per cent against a basket of major currencies and 0.4 per cent against Japan’s yen.
The attacks in Paris on Friday, which have killed at least 129 people, have sparked a rout in airline stocks today as investors weigh up the possible economic fallout from dampened tourism to the country. “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 Thieliant of Capital Economics wrote in a research note.
Asian shares also extended losses from last week, as investors brace for the Federal Reserve to raise rates as soon as December.
Across in Asia, markets mostly fell.
News that Marriott worldwide agreed to acquire rival hotel chain Starwood for $12.2 billion received a mixed response. If completed, the deal would make Marriott the world’s largest hotelier by a wide margin. Ten-year yields were last down 2.1 bps at 2.59 percent, having hit 2.41 percent in Asian trade.
ENERGIZED: Shares in several energy companies moved higher.
The prospects of stepped-up military action to counteract terror threats helped give defense contractors a boost. Northrop Grumman gained $6.47, or 3.7 percent, to $185.38, while Lockheed Martin added $5.71, or 2.7 percent, to $218.85.
Traders also bid up shares in defense contractors, while travel-related stocks slumped.
In Europe, futures trade pointed to sharp falls in the main markets with the FTSE100 predicted to be down 40 points or around 0.6% at the open and the Dax in Germany down 1%. In Asia, Japan’s Nikkei 225 fell almost 1 percent, while Australia’s S&P/ASX 200 lost almost 1 percent. Carnival fell 95 cents, or 1.8 percent, to $50.61.
BONDS: USA government bond prices rose.
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US data on Friday showed retail sales were weaker than expected and producer prices slipped for the second straight month, but USA consumer sentiment beat forecasts and rose for the second straight month.
