Markets fall after Istanbul terror attacks

MARKETS had a nervous day yesterday following the Istanbul bombings, but positive economic data from the US and comments by US Federal Reserve chairman Alan Greenspan helped offset falls.

Major European markets fell by 1% as news of the terrorist attacks filtered through, with airlines, travel operators and insurance companies particularly affected. Investors bought oil as well as gold and the Swiss franc, traditionally regarded as safe havens, amid fears of a wider terrorist-related campaign in western countries.

Shares in airlines Lufthansa, Air France and KLM fell by around 3%. Shares in travel operators and hotels also had similar falls, although major indices recorded smaller declines. London’s FTSE closed down 0.45%, while the DAX in Frankfurt was down 0.39%. The ISEQ index fell by 0.7%. New York’s Dow Jones fell slightly in early trading yesterday but was down less than 0.1%. Trading was suspended on the Istanbul stock exchange after falling more than 7% in the immediate aftermath of the bombings.