Global stocks rally Tuesday as fears over Paris attacks fade. European indexes opened in the green territory.
In the U.S., stocks on Monday snapped a three-session losing streak to close higher. The S&P 500 added 1.5% to close at 2,053.19, with all 10 main sectors finishing higher. The Dow Jones Industrial Average gained 1.4%, to end at 17,483.01, led by energy stocks Chevron Corp. and Exxon Mobil Corp.. The Nasdaq Composite rose 1.2%, to finish at 4,984.62.
Asian markets recovered on Tuesday. Having dropped 1% on Monday following the awful events in Paris, Japan’s benchmark index recovered its losses - and more - today to finish 1.22% higher.
Other markets also jumped - apart from China which was pretty flat with the Shanghai Composite ending the session down 0.06%. Hong Kong's Hang Seng added 1.56%, while India's SENSEX was 0.24% higher.
Investors have been inspired by the solid trading in Europe yesterday, as traders in London, Paris and Frankfurt held their collective nerve.
"Stock market gains comes in spite of lingering worries about a slowing China (Copper has hit fresh 6 year lows) and the US dollar hitting new highs as traders price in a December US rate hike and global central bank policy divergence," said Mike van Dulken of Accendo Markets.
In Europe, London's FTSE 100 opened up 0.46%. France’s CAC index and Germany’s DAX have both gained around 1% too.
Kent Engelke, chief economic strategist at Capitol Securities Management Inc., said:
"In some regards the markets think that the attacks, as horrific as they were, did little to change the economic landscape. Others believe the attack will delay any Fed action."
Citi analysts think that the reaction is likely muted "given the tendency of financial markets to treat such developments as idiosyncratic and the unfortunate reality of a world where large-scale carnage has become an almost daily, if sickening, development."
