Wall Street Points To Higher Opening As European Markets React To Paris Attacks

U.S. markets open higher after Paris attacks

All signs are pointing to a slightly higher yet reserved opening on Wall Street today in the wake of the Paris attacks on Friday. U.S. stock index futures suggest a slightly higher opening while investors seek comfortable safe-haven assets.

Late Friday night, more than 120 people were killed in bold and coordinated attacks in Paris. As previously reported by the Inquisitr, the Islamic militant group, ISIS, claimed responsibility for the terrorist attacks. France has since struck back with a counter-attack against ISIS-related targets in Syria.

Although European markets were trading higher Monday, the full economic impact of the attacks has yet to be seen.

“Everything is of secondary importance to Friday’s events in Paris. It is far too soon to judge the full economic implications of the attacks,” said economist Emily Nicol with Daiwa Capital Markets.

Under tight security, the Euronext Paris exchange opened normally on Monday. So far, the market reaction is mixed.

European markets open mixed after Paris attacks.

In early trading, travel and tourism companies were the hardest hit, but stock losses overall were small. By late morning, the market recovered. This pattern repeated in other European markets as well.

From a report by KSPR 33, the French economy will most likely suffer in the short term, according to most experts. The attacks in Paris will damage consumer confidence at least in the near future. Europe, in general, will be affected, but most of the impact will be in France itself.

The tourism industry, a major source of revenue for the Paris economy, will feel the most pain. When it comes to the amount of money spent by tourists, Paris is third in the world, behind London and New York City.

Trading on the Euronext Paris exchange, Airline KLM-Air France shares fell 5 percent, as did French hotel group Accor. Eurotunnel Group was also down 5 percent in early trading. Other big French companies like AXA, BNP Paribas, L’Oreal, Carrefour, and Total also trade on the exchange.

The Paris attacks have obviously created turbulence in the market and on Wall Street. However, after the previous 2004 Madrid and 2005 London attacks, the markets swiftly recovered. Many analysts believe the French economy will experience a similar rebound.

Holger Schmieding with Berenberg bank wrote, “Experience suggests that such acts of terror do not derail economic trends in mature Western economies.”

One Wall Street analyst, Angus Nicholson, agrees that the Paris terror attacks are only a short-term setback for large economies like France.

“All indications are that these negative moves will only be temporary and are likely to dissipate over the coming days,” he stated.

When the market closed on Friday before the attacks, French stocks trading in the Paris CAC were up 12.5 percent for the year. Overall, the French economy grew a modest 0.3 percent in the third quarter.

With the recent events and uncertainty, CNBC reports Wall Street investors are looking for safety. U.S. Treasuries are in steady demand with yields down 2.26 percent on 10-year paper. Gold is trading 0.7 percent higher at $1,091 per troy ounce. Additionally, U.S. crude oil futures were up one percent at $41.44 a barrel.

Wall Street looking for safety in wake of Paris attacks.

Even top investor Warren Buffet doesn’t seem to be nervous. Speaking with CNBC, Buffet said he has no plans to sell any stocks because of the Paris attacks.

At 9:25 a.m. ET today, the New York Stock Exchange and Nasdaq observed a moment of silence to remember the victims of Friday’s attacks.

U.S. stock futures did slightly drop overnight as expected but recovered early this morning. Obviously, many on Wall Street are cautious right now due to any unforeseen market volatility. However, many analysts predict the attacks in Paris to make little or no dent on the markets overall and should mostly return to normal trading in the coming days.

[Photo by Spencer Platt/Getty Images]