French stocks drop, dragging Europe shares lower after attacks

French flags and a note reading "We will not let you spoil our children's lives" at the site of the attack at the Cafe Belle Equipe on rue de Charonne in the 11th district, early on November 16, 2015 in Paris, three days after the terrorist attacks that left over 130 dead and more than 350 injured. France prepared to fall silent at noon on November 16 to mourn victims of the Paris attacks after its warplanes pounded the Syrian stronghold of Islamic State, the jihadist group that has claimed responsibility for the slaughter. AFP PHOTO / KENZO TRIBOUILLARD

PARIS: 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 percent at 9:06 a.m. in Paris. 

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 percent last week, the most since the beginning of September, amid worse-than-forecast data on euro- area growth. The CAC 40 declined almost 9 percent 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 U.S. 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 percent, the most among CAC 40 stocks. Kering SA, which shut boutiques of brands like Gucci and Bottega Veneta, declined 2.9 percent, and LVMH Moet Hennessy Louis Vuitton SE fell 3.2 percent. Insurer AXA SA declined 1.8 percent.
    
Elsewhere, other stocks moved on corporate news. Sonova Holding AG tumbled 6.8 percent after the maker of hearing aids cut its annual sales and profit forecasts. Premier Oil Plc added 4.7 percent after selling its Norwegian assets to Det Norske.