Following the truly awful events in Paris on Friday
In the wake of the monstrosities in France that will have reverberations for us all in the days, weeks and months to come Reuters carry a piece on what the impact might be in the immediate aftermath.
"Global stocks are set for a short-term sell-off on Monday after Islamist militants launched coordinated attacks across Paris that killed 129 people, but few strategists expect a prolonged economic impact or change in prevailing market directions.
If anything, any initial damage to economic confidence, tourism and trade within Europe will likely reinforce the European Central Bank's resolve to easing monetary policy further next month, they reckon. That will keep pressure on the euro exchange rate and support other European asset markets.
Analysts at Citi say just the initial shock of the attacks may challenge extremely leveraged plays - such as heavy short positions in the euro or oil futures. But there was little reason to see that unwind be anything other than temporary.
"The market is heavily short euro and concerns are high any risk will trigger a short squeeze," they told clients. "We don't think it will - and would sell into one if it appears. The attacks do not undermine the initial reasons for being short euro - or reduce the possibility of (ECB) action. Instead, they increase the likelihood of greater accommodation in our view."
While news of the attacks hit after markets closed on Friday, S&P 500 Index futures SPc1 were still trading and shed about 1% in light volume.
"If this had happened during market trading hours there could have been a panic but markets had a weekend to digest all the information," said Eiji Kinouchi, chief technical analyst at Daiwa Securities in Tokyo"
Reuters has more here
