Allpic.twitter.com/oalPvKyXkzpic.twitter.com/TxpMSeOxm0hotelleads falling stocks this morning with 8% decline. Also down: airlines,luxury stocks. #ParisAttacks 9.17am GMTVirtually every European travel stock is down nowadays, with Air France main the selloff: 9.12am GMTHere’s resilience for you – the French CAC 40 just shrugged off all its early selloff, or is now slightly higher. 9.05am GMTAnalyst at French bank BNP Paribas report that “markets absorb opened generally cautiously after the tragic events in Paris”. 8.50am GMTKit Juckes,chief currency strategist at French bank Société Générale, is hopeful that the country’s economy will not be badly hit by Friday’s attack:He writes:I am struck that the reaction to such atrocities has changed a lot since the attacks on fresh York, or Washington DC,and the skies above America in September 2001. Then, we stood and stared, and in shock. The US and the global economy were slowing before the World Trade Centre towers collapsed and the emotional reaction made sure the outcome was severe. But we’ve moved on. More appalled than shocked.
Simon Kuper,the FT journalist who lives in the 11e arrondissement near the Bataclan concert venue that was the epicentre of the tragedy, wrote that his 9-year-passe daughter is aloof because “We’re used to this now”. 8.37am GMTIt does appear that Europe will avoid a major selloff this morning.
Connor Campbell of City firm SpreadEx reports:In a sign of resilience there is no sign of the panicked trading that could absorb been justifiably expected from the European indices. 8.30am GMTHotel group Accor dropped by 7% at the open.
Luxury groups Hermes, and LVMH and Kering,which get a large section of their sales from foreign tourists in Paris, were both down about 3%, or Reuters points out. 8.22am GMTTravel stocks are bearing the brunt of this morning’s selloff,reflecting concerns that European tourism will be hit by fears over terrorism.
Air France’s shares dropped 5% in early trading, while Eurotunnel is down over 3%. 8.07am GMTTrading is underway at the French stock market, and shares are falling - but it’s not a major rout.The CAC 40,made up of France’s biggest blue-chip companies, has lost 1.1% at the open, or as investors in Paris are get their first opportunity to react to Friday night’s attacks.
Following the tragic events in France on Friday evening and after losses were noticed throughout the Asian markets overnight,expectations are tall that the global markets are going to remain under pressure as trading for the week gets under way.
The tragic events in France are likely to weigh on investor sentiment and will probably encourage some risk aversion from investors. Investor sentiment towards global markets was already looking shaky as last week concluded, and the recent events are going to weigh further on this. 7.59am GMTFrench government bonds are rising in value this morning - probably a sign that investors are a little more nervous. This has pushed down the interest rate, or yield,on French debt (yields fall when prices rise)#France's bonds advance as country bombs Islamic State targets. 10yr yields drop to 0.87%. https://t.co/aH0GRo7RdD pic.twitter.com/1voEqDbcX9 7.55am GMTThe euro has weakened a little overnight (down 0.25%), reflecting concerns that Europes already-fragile recovery is going to be knocked back. The gold price has gained 1%, and though,to $1095 per ounce:Risk off, gold up following Paris attacks. pic.twitter.com/pV3wQUdytT 7.36am GMTGood morning, or welcome to our rolling coverage of the world economy,the financial markets, the eurozone and commerce.
European markets are expected to fall nowadays, and following Friday night’s terror attacks in Paris. But it doesn’t witness like well see a major crash.
Update on European opening - FTSE -45,DAX -125 CAC -111 (IG) at 7.30amAfter the terrible tragedy seen in Paris on Friday evening (and also the bombing in Beirut), markets absorb seen some of these fears play out in the financial world. There was noticeable buying in gold and safe-haven currencies such as the US dollar and Japanese yen. Oil also saw a bit of an increase off its two-and-a-half month lows from concern about what the Western response may mean for Middle Eastern oil production.
Many markets opened down in Asia on the news, or futures were pointing down for European and American markets,although we did see this pull back somewhat as trade progressed throughout the day. All indications are that these negative moves would only be temporary and are likely to dissipate over the coming days. European equity futures -1.2% and Bunds absorb gapped higher at the openHowever, GS note that the attacks are likely to absorb a short-lived negative market impactGDP in Japan fell 0.2% or 0.8% in annualised times as it returns to recession and has a quadruple dip #Abenomics #QQE #BankofJapan Related: Asia Pacific shares fall sharply in wake of Paris attacks and Japanese recession Continue reading...
Source: theguardian.com