World markets struggle after fatal attacks in Europe

London / AFP

Global markets struggled on Tuesday as traders mulled the impact of this week’s deadly attacks in Europe before the Christmas and New Year holiday. Frankfurt and London were flat around midday after
Monday’s fatal attacks in Germany and Turkey, Paris eked out gains and most
Asian indices faltered.
At least 12 people were killed and dozens injured late Monday when a lorry was driven into a packed Berlin Christmas market in what German Chancellor Angela Merkel declared was a “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 said.
“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 IS group and carried out by asylum-seekers.
The incidents led to a promise by US
President-elect Donald Trump to wipe
“terrorists” off the face of the Earth.
Monday’s deadly events come as geopolitical tension was ratcheted up after China last week seized an unmanned US sea survey drone 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. The drone has now been
returned.

‘TERROR ATTACKS PRICED IN’
“Terrorism, political and geopolitical problems flooded the headlines globally,” said London Capital Group analyst Ipek Ozkardeskaya. “Rising tensions between
the US and China, terrorism and carnage in Europe keep the global sentiment conta-ined, 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.” Equities in Europe had diverged on Monday in
hesitant deals heading into the festive holiday season.
Hong Kong closed down 0.5 percent and Shanghai also ended down 0.5 percent, with mainland Chinese investors fretting over a weakening yuan and rising bond yields. However, Tokyo ended 0.5 percent higher after the Bank of Japan held fire on its stimulus but gave an upbeat view of the world’s number-three economy as exports pick up on the back of a weaker yen.