Monday, 16 November 2015

Markets react to Paris attack

Markets are falling early on Monday after the terrorist attack in Paris on Friday. From Bloomberg:

Europe’s common currency weakened 0.5 percent against the dollar as the deadly violence in Paris on Friday heightened concern that geopolitical tension will weigh on trade and consumer confidence. China led losses in Asian equity markets after authorities tightened curbs on the use of borrowed money to buy shares. Index futures in the U.S. and the U.K. dropped. Gold advanced the most in a month, while Treasuries climbed for a fifth day.

Some analysts think the long-term impact will be limited though.

“Global markets may turn to risk-off in the short term as geopolitical risk rises,” said Kiyoshi Ishigane, chief strategist at Mitsubishi UFJ Kokusai Asset Management in Tokyo. “But I think the impact to the global economy is limited, even if there is some impact on the French and EU economies.”

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