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As Terror Episodes Increase, So Has Global Market Resilience

  • Paris murders come at a sensitive time for investors worldwide
  • Reactions to past attacks have been swift and mostly short
Bloomberg business news

Markets’ Knee-Jerk Reaction to the Paris Attacks

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French stocks were resilient after attacks killed scores of people in Paris Friday, reprising a trend in financial markets over the last 15 years where reactions to terror incidents have become increasingly short-lived.

France’s CAC 40 Index closed little changed, paring a drop of as much as 1.2 percent and even briefly rising 0.3 percent. The murder of at least 129 people in a coordinated plot linked to Islamist radicals occurred at a fraught time for global stocks, thrusting geopolitical anxiety to the top of a list of concerns that caused volatility to surge in recent months.