FTSE 100 watch: Footsie remains resilient after Paris attacks

on Nov 16, 2015

The UK benchmark index has turned positive in today’s session, after opening in the red, with gains in oil and mining stocks offsetting a hefty drop in the travel and leisure sector in the wake of the terrorist attacks in Paris on Friday night.

As of 12:23 GMT, the FTSE 100 index had added 21.84 points to stand 0.36 percent higher at 6,140.12, having opened in negative territory. The index has found support in miners which have been in demand in the wake of Paris’ terrorist attacks which have prompted investors to flock to safe-haven assets such as gold. BHP Billiton (LON:BLT) is leading other London-listed miners higher, having added 1.28 percent to 894.70p so far today.
“The kneejerk reaction has been to seek safety from further potential terrorist fallout in gold, which is rebounding from near five-year lows,” Jasper Lawler, market analyst at CMC Markets, said in a note. “The resulting strength across the basic resource sector from higher gold and oil prices is the main reason the FTSE 100 turned green after the initial Paris attack-induced sell-off.”
France’s air strikes in Syria meanwhile have boosted oil prices, fuelling demand for energy shares. Royal Dutch Shell (LON:RDSA) has been the top gainer in the sector, with Shell’s share price currently standing 2.52 percent higher at 1,607.50p.
At the other end of the spectrum has been TUI Group (LON:TUI) which is leading other travel and leisure stocks lower. TUI’s share price is 4.59 percent worse off at 1,082.00p.
“Most continental European equity markets are lower as investor reaction sees the flight to safety that is an inevitable reflex response from any terrorist attack,” Rebecca O’Keefe, of Interactive Investor, told The Telegraph. “However in a major sign of defiance, equity markets have fallen far less than expected and, outside of tourism and transport stocks, remain resilient.”
**The FTSE 100 index was 0.35 percent up at 6,139.43 points as of 12:47 GMT on November 16, 2015.**

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