Tuesday 27 September 2016

European stock markets showed resilience after Paris suffered the region's worst terror attacks in more than a decade, with French equities paring declines.

Published 17/11/2015 | 02:30

Traders on hold a moment of silence, in response to the Paris attacks, on the floor of the New York Stock Exchange. Photo: Reuters
Traders on hold a moment of silence, in response to the Paris attacks, on the floor of the New York Stock Exchange. Photo: Reuters

European stock markets showed resilience after Paris suffered the region's worst terror attacks in more than a decade, with French equities paring declines.

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The CAC 40 Index closed little changed, trimming a slide of as much as 1.2pc and briefly climbing 0.3pc.

Energy producers rallied in Europe, offsetting declines in travel shares. That sent the Stoxx Europe 600 Index up 0.3pc, erasing an earlier drop of as much as 0.8pc.

By the close in Dublin, the ISEQ Overall Index was up 0.22pc, or 14.57 points, to end the trading session at 6,490.33 points.

The leaders on the Dublin market included packaging giant Smurfit Kappa, which increased 0.1pc to €25.40, while Applegreen rose 0.6pc to €5.08.

On the other side of the board, the laggards included Ryanair, which closed down 1.4pc to €14.20, while Green REIT dropped 2pc to €1.49.

"Though everyone is obviously very downbeat today, market reactions have been fairly moderate," Teis Knuthsen, chief investment officer at Saxo Bank's private-banking unit in Denmark, said yesterday.

"But the real question for investors after these geopolitical shocks is whether they will have a meaningful impact on a country's economic performance. Unless that's the case, lessons from history show that the impact tends to be very short-term."

The history of terror incidents around the world over the last 15 years shows market reactions are often sharp and, increasingly, short-lived. The number of Stoxx 600 shares changing hands was about a fifth lower than the 30-day average yesterday.

France bombed Islamic State targets in Syria after the Paris attacks killed at least 129 people on Friday. Islamic State said the terror acts were in retaliation for France's military involvement in the Middle East.

Irish Independent

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