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London - French stocks fell with European equities as the market reopened after Paris suffered the worst terror attacks in Europe’s history in more than a decade.
The CAC 40 Index lost 0.9% at 10:06. France bombed Islamic State’s nerve center in Raqqa on Sunday evening, becoming the only European power conducting major combat operations over both Iraq and Syria.
Islamic State said the Paris attacks were payback for France’s military involvement in the Middle East. The Stoxx Europe 600 Index declined 0.6 percent.
The attacks came as concerns that the global economic recovery is slowing have taken shares lower in recent weeks. The Stoxx 600 lost 2.7% last week, the most since the beginning of September, amid worse-than-forecast data on eurozone growth.
The CAC 40 declined almost 9% since April, though it was still among the best performers in developed markets for the year as of Friday.
Investors sought haven assets today, sending French government bonds higher along with US Treasuries. Yet the history of terror incidents around the world over the last 15 years shows market reactions are often sharp and, increasingly, short-lived.
Some French companies impacted by the events included hotel operator Accor SA. Its shares sank 7.2%, the most among CAC 40 stocks. Kering SA, which shut boutiques of brands like Gucci and Bottega Veneta, declined 2.9%, and LVMH Moet Hennessy Louis Vuitton SE fell 3.2%. Insurer AXA SA declined 1.8%.
Elsewhere, other stocks moved on corporate news. Sonova Holding AG tumbled 6.8% after the maker of hearing aids cut its annual sales and profit forecasts. Premier Oil added 4.7% after selling its Norwegian assets to Det Norske.
