US and European Stock Slid After Paris Attack; Market Shows Growing Resilience

After a Paris devastating terror attack by Islamic State on Friday night, global market reacted to the event. US and European stock slid slightly, and so are markets in other parts of the world. However, global market resilience have increased to show their strength against terrrorism.

According to Reuters, global stocks fell and oil prices registered the biggest weekly loss in eight months. In Wall Street, three major indices experienced worst week since August. Dow Jones industrial average fell 202.83 points, or 1.16 percent, to 17,245.24, Standards & Poor's S&P 500 lost 22.93 points, or 1.12 percent, to 2,023.04 and the Nasdaq Composite dropped 77.20 points, or 1.54 percent, to 4,927.88. In regard to the drop, Alan Lancz, president of Alan B. Lancz & Associates Inc investment advisor told Reuter, "The geopolitical aspect is always out there, and anything that brings that back into the headlines will pull the buy orders fairly quickly,"

In stock futures, CNBC reported that U.S. stock futures fell on Sunday, indicating a lower open for blue chip stocks as market reacted to the Paris terror attack. Other markets also showed a slight drop, Dow futures fell 150 points in early trading, but clawed back some of losses. Japan's Nikkei fell by 1.6 percent, Germany's DAX futures plunged by two percent, France's CAC Index futures tumbled by nearly 4 percent. London's FTSE Index futures slid two percent in early dealings. While Australia's ASX 200 also suffered losses by more than a percent in early dealings. Analysts said that in environment where geopolitical tension get higher, investors are most likely back out from risk-sensitive assets.

However, Bloomberg noted that in the history of terror incidents around the world over the last 15 years shows market reactions are often sharp and increasingly, short-lived. In the 9/11 attack, New York Stock Exchange Index slumped for five days before rebounded. While in Bali's bombing the Jakarta Stock Market dropped for three days. In Madrid bombing in commuter trains that killed 191 people on March 11, 2004, Spain's IBEX market dropped 2.2 percent and soon rebounded after four days, In 2005 London subway attack that killed 50 people, London's FTSE 100 rebounded in a day after. In regard to growing market resilience, Matt Maley, an equity strategist at Miller Tabak & Co. in New York said "People will want to stand together and say we're going to act as normal as possible,"

Terrorist attack carries terrorism ideology may always be present. However, the market resilience has grown stonger and more resilience. As U.S and Europe market and global market only fell slightly, after the Paris attack on Friday night.