French Exchange Plans Normal Open
London — French stocks will trade without interruption Monday as investors come to terms with attacks in Paris that left more than 100 people dead in Europe’s worst terror incident in more than a decade.
Euronext Paris is planning no alteration to its schedule, Caroline Nico, a spokeswoman for parent Euronext NV, said in an e-mail. The Paris stock exchange is located in the district of the city’s 2nd arrondissement, miles from the sites of shootings and bombings that French President Francois Hollande has termed an “act of war” by Islamic State.
It’s been 10 years since Europe experienced terror attacks of comparable scope. Past incidents, such as bombings that killed 191 people on Madrid commuter trains in March 2004 and left more than 50 dead in London in July 2005, spurred selloffs in equities that were erased days or weeks later.
“Wouldn’t be surprised to see markets down 2 percent to 3 percent, maybe even more,” said Yogi Dewan, the chief executive officer of Hassium Asset Management in Gerrards Cross, U.K. His firm manages about $1 billion. “Sectors will be impacted in Europe such as insurance, travel and leisure. High oil prices for a significant period will also impact on an already fragile global growth story.”
French stocks, down about 9 percent from their April high, were among the year’s best performing in developed markets through Friday. The euro may fall, while German bonds and U.S. Treasuries are likely to rise, Dewan said. Oil could also climb on deteriorating sentiment toward Syria and the Middle East.
Stock gauges in the U.K. and Spain briefly tumbled and the nations’ government bonds rose after the London bombings of 2005 and Madrid attacks of 2004.
The FTSE 100 Index dropped 1.4 percent on July 7, 2005, the most in almost a year, and the yield on 10-year gilts fell eight basis points. The British stock gauge recovered its losses the following day. Spain’s IBEX 35 Index declined 2.2 percent on March 11, 2004, erasing the drop by the end of that month.