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Markets

European stocks diverge after fatal attacks

Published Updated

imageLONDON: European stocks rose in Frankfurt and Paris but fell in London following deadly attacks in Germany and Turkey, dealers said.

In morning deals, Frankfurt's benchmark DAX 30 index rose 0.1 percent to 11,441 points and the Paris CAC 40 advanced 0.3 percent to 4,837.60.

London's FTSE 100 dipped 0.2 percent to 7,006.30 points compared with the close on Monday.

At least 12 people were killed and dozens injured late Monday when a lorry was driven into a packed Berlin Christmas market in what police said was "a probable terrorist attack".

That came after an off-duty policeman shot dead Russia's ambassador to Turkey in Ankara. Also Monday, three people were hurt in a gun attack on a mosque in Zurich.

"Sadly, the regularity of such attacks means they no longer surprise the markets in the way they once might have," Spreadex trader Connor Campbell told AFP.

"In the case of the potential (terrorist) attack in Berlin, the fact it happened outside market hours meant that investors had time to process the event before the start of trading, likely contributing to the placid-to-positive open seen this Tuesday."

Europe has been on high alert for most of 2016, with terror attacks striking Paris and Brussels, while Germany has been hit by several assaults claimed by the Islamic State group and carried out by asylum-seekers.

Equities in the region had diverged on Monday in hesitant deals heading into the Christmas and New Year holiday season.

Monday's deadly events come as geopolitical tension was ratcheted up after China last week seized an unmanned US sea survey probe from international waters in the South China Sea.

That sparked a rebuke from Trump, raising fears about future US ties with China, with the tycoon already hitting out at Beijing in recent weeks over several issues from Taiwan to trade.

"Terrorism, political and geopolitical problems flooded the headlines globally," added London Capital Group analyst Ipek Ozkardeskaya.

"Rising tensions between the US and China, terrorism and carnage in Europe keep the global sentiment contained, although the market reaction remains under control."

She added: "Markets are getting used to co-exist with the current unrest. Terror attacks appear as already priced in."

Copyright AFP (Agence France-Press), 2016

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