Markets react to uncertainty after Paris attacks

Tokyo-Stock-Exchange

Nov 16, 2015 (LBO) – World markets reacted to uncertainty on Monday after attacks in Paris that killed 129 people.

The Nikkei was down 0.92 percent at 2.00 GMT with traditional safe-haven investments such as gold, the US dollar, and Japanese yen opening stronger.

Gold was up 0.83 percent, the euro fell 0.5 percent against the dollar, and 10-year U.S. Treasuries declined 2 basis points to 2.24 percent.

“The knee-jerk reaction in other terrorist attacks over the last decade has been a rush to safety, including aggressive buying in the US Treasury markets,” Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC, told BBC.

French fighter jets bombed Islamic State’s bases in Raqqa, Syria on Sunday evening after ISIS claimed responsibility for the co-ordinated shootings and blasts in Paris. France is the only European country conducting major combat operations in Iraq and Syria.

French financial markets will open as usual on Monday, and analysts said stocks connected to the country’s tourism sector likely to retreat.

Stock markets in the Middle East fell during Sunday trading with Dubai’s DFM General Index falling 3.7 percent, Egypt’s EGX30 Index tumbled 4.2 percent, and Saudi Arabia’s Tadawul All Share Index also dropped sharply.