European travel and tourism firms saw their shares tumble as investors went into a panic following the Paris attacks.
Stock Markets Remain Resilient After Paris AttacksThe most impacted stocks were those of airlines, with British Airways’ IAG and Air France down 3% and 5% respectively, while Accor, the French hotel group was down 5%.
In Frankfurt, U.S. and London, the stock markets closed following a recovery from falls earlier in the day. The Cac Index in France closed 0.08% down.
As investors fled the travel and tourism sector, they focused on conventional safe havens, which saw the price of gold rise by 1%.
All the three major indexes on Wall Street closed more than 1% higher.”
John Brady, the managing director at R.J. O’Brien & Associates said, “Markets are becoming increasingly immune to events of this nature.”
Continued resilienceIt was anticipated that the travel and leisure stocks would suffer the hardest blow on Monday as markets reacted to the Paris attacks on November Friday 13.
Eurotunnel Group was down 3%, Aeropots de Paris fell 4% while Kering was down 1%.
Others including Ryanair fell by about 3% and closed by 1.43% low while Easyjet declined by up to 3% and closed 0.39% lower.
Robert Lutts, president and Chief investment officer at Cabot Wealth Management said, “The Paris attack and its massive scale could have a significant impact on the tourism and travel sector.”
Speaking to the Reuters News Agency, Hedenori Suezawa, a financial analyst at SMBC Nikko Securities also pointed out, “Given the large size of the French tourism industry, these attacks could potentially damage the economy if there is a decline in visitors to France, or if Europe faces a decline in tourism following the crash of the Russian plane.”
Analysts have also warned that a disruption of tourism in Europe could cause a weakening of the euro. Even then, the euro was relatively strong against other currencies on Monday, with analysts predicting that the effect of the Paris attacks on the markets could be short-lived.