European markets bounce back quickly from Paris terror attacks
European shares held steady yesterday, supported by gains in the energy sector that helped offset a slump in travel stocks following last Friday's attacks in Paris.
Energy shares outpaced the broader market, on the prospect of higher oil prices following French air strikes against Islamic State in Syria.
Unsurprisingly, French shares underperformed yesterday following the attacks by Islamist militants.
In global terms data showing Japan back in recession weighed more heavily that the fall out from the Paris attacks.
However, around €2.5bn was wiped off the STOXX 60 Travel & Leisure index amid fears that the sector could be impacted by loss of consumer confidence.
Shares in French hotel group Accor fell 5.2pc, Air France fell 5.6pc while shares in Eurotunnel and Aeroports de Paris, the operator of Paris' Charles de Gaulle and Orly airports, were down 3.8pc. Luxury stocks were also under pressure.
Hermes, LVMH and Kering, which get a large part of their sales from foreign tourists in the French capital, were all down more than 1pc.
Outside the retail and travel sectors, European stock markets were broadly resilient, with the attacks seen as strengthening the case for the European Central Bank to provide further monetary stimulus when it meets next month.