Markets open lower after Paris attacks
Stock markets across Europe and Asia edged lower after opening for the first time since the deadly attacks in Paris on Friday night.
France’s CAC 40 was down 1.12% in early trading, while Germany’s Dax dipped 0.86%, the ISEQ in Dublin slipped 0.34% to 6,453.54 and the FTSE 100 was down 0.25%.
Over in Asia, the Hang Seng Index in Hong Kong suffered a 1.7% fall, while Japan’s Nikkei 225 was down just over 1%.
Michael Hewson, chief market analyst at CMC Markets, said European indices were already under pressure due to a combination of plunging oil prices, weak earnings reports as well as increasing evidence that the economic recovery was starting to run out of steam.
Speaking about the Paris attacks, he added: “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.
“This in itself is likely to be significant for not only politicians but central bankers as well, and anything that causes European consumers to retrench further is likely to be a significant concern for a European Central Bank already concerned about deflation and a lack of demand.”
Tony Cross, market analyst at Trustnet Direct, said travel firms in particular faced an uncertain week as investors worry about the knock-on effects of the attacks on the travel industry.
“London has kicked off the week lower once again and, whilst reaction to the brutal attacks in Paris on Friday night may not be the only sentiment in play, the events are certainly casting a dark shadow in early trade.
“The biggest losers are all in the travel sector – easyJet, IAG, Intercontinental Hotels, TUI and Carnival Cruise Lines are propping up the foot of the index as investors worry over the knock-on effects here.”
