Ominous clouds over the Euro zone are refusing to pass. At least back-to-back hits last week corroborate this fact. If weaker-than-expected GDP data for the bloc in Q3 – merely 0.3% – was not enough to dampen investors’ mood, a gruesome terror attack in Paris, slaughtered whatever little bit of risk-on trade investing sentiment over the region was left.
In fact, not only the Euro zone, the entire risk-pro global investing backdrop took a beating after the terrorist group ISIS took responsibility for the attack in the French capital on Friday. Squads of Islamic State-backed gunmen assassinated about 129 people in a chain attack at various locations and left hundreds severely injured. This was Europe’s worst terror assault in over a decade, as per Bloomberg.
In vengeance, France bombed the Syrian city of Raqqa on Sunday night which was the most hostile anti-terrorism strike by the former against this Islamic group. With the global superpowers including France now looking confident of bolstering defense against ISIS, geo-political issues may crop up in the coming days.
Needless to say, all global risky assets went into a tailspin following this horrible incident. Though the French economy fared better than other biggies in the bloc in Q3, having returned to subtle growth on higher domestic demand, investors did not have time to celebrate the recovery as terrorism took the upper hand over an improving economy.