European stock markets churned higher yesterday unfazed by deadly attacks in Europe and Wall Street edged higher towards the 20,000 points level on the Dow.
In London, the FTSE 100 up 0.4% to 7,043.96 points; Frankfurt — DAX 30 up 0.3% to 11,464.74 points and Paris — CAC 40 up 0.6% to 4,849.89 points at the close yesterday.
Paris, London and Frankfurt pulled off moderate gains at closing, a day after fatal attacks in Germany and Turkey that dominated the day’s news headlines.
“The market remains on an upward trend,” said Sylvain Navarro, head of equity sales at Invest Securities.
Attacks in Europe “could well have brought on a bit of stress, but for now that hasn’t happened,” he said.
Twelve people were killed and nearly 50 injured when a lorry ploughed into a Berlin Christmas market in what German Chancellor Angela Merkel described as a likely “terrorist” attack.
The deadly rampage closely followed the shooting dead of Russia’s ambassador to Turkey in Ankara by a Turkish policeman and a gun attack on a mosque in the Swiss city of Zurich, in which three were injured.
“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.
Europe has been on high alert for most of this year, with terror attacks striking Paris and Brussels, while Germany has been hit by several assaults.
“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 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.”
Shares in Mediaset surged 23.3% at closing in Milan amid an unfolding battle for control of the Italian TV company between French corporate raider Vincent Bollore and the Berlusconi family.
Bollore-led Vivendi said it would increase its Mediaset holding to up to 30% from 20% now, in a strategy that has raised fierce resistance from the Berlusconis, who have called the move “hostile”.
In US trading, financial and industrial shares led the Dow back to within striking distance of 20,000 points in early trading.
Briefing.com analyst Patrick O’Hare said the market had “acknowledged the news” but that, in the end, did not “deviate from its winning ways”.
Hong Kong closed down 0.5% and Shanghai also ended down 0.5%, with mainland Chinese investors fretting over a weakening yuan and rising bond yields.
However, Tokyo ended 0.5% 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.
A visitor passes a sign inside the London Stock Exchange. The FTSE 100 closed up 0.4% to 7,043.96 points yesterday.
