Around 130 people were killed and hundreds others injured on Friday evening in Paris, in what is France’s most devastating terror attack ever. Three teams of attackers carried out seven separate attacks in the country’s national capital. This included an attack on France’s national sports stadium.

Short-Term Impact Likely

However, in this one instance, casualties were limited due to quick and effective action. The maximum number of deaths took place during an attack on the Bataclan theater. President François Hollande blamed the Islamic State (ISIS) for the attacks, vowing to take strict action.

Global markets and France’s stocks in particular are expected to suffer to a certain extent as a fallout of this incident. However, market watchers believe that the effect will be short-term in nature and limited to those sectors which are sensitive to such incidents.

This is in keeping with the theme that the duration of impact of terror attacks on markets becomes increasingly shorter as the number of such incidents increases.

Europe’s Indexes Show Resilience

Global stocks are expected to take a hit following the incident, but have shown resilience as of now. France’s benchmark CAC 40 lost 1.2% at the start of trading. Germany’s DAX and Britain’s FTSE 100 had also started the day around 0.9% and 0.2% lower.

However, the CAC 40 was only 0.1% lower at 12:17 PM GMT. It even gained 0.3% for a short period. Both the DAX and the FTSE 100 gained 0.2% around 11:29 GMT and 12:15 PM GMT.

The Stoxx Europe 600 Index gained 0.1% and increased nearly 0.5% at one point. The index managed to erase a decline of 0.8%, following a rally from energy and mining shares.

Tourism, Luxury Stocks Decline

Tourism, airline and luxury stocks bore the brunt of the negative impact. Among the French companies to suffer was hotel group Accor SA, which lost 5.4% at one point. Other travel related companies also took a hit with shares of Air France-KLM Group declining 5.7% and Aeroports de Paris dropping 4.9%.