Terror   Slows Market

07 July 2005

Markets calm in the wake of terror attack.

Thursday saw in reality only half a days trading with the power market closing after lunch as many traders closed offices in an attempt to get home. Interestingly the market was bullish before the terror activity and one would normally expect a significant spike in commodities and a dip in stocks and shares on the back of such attacks. However oil, fell on the day with traders discounting terrorist activity almost immediately and in some cases suggesting that such activity would decrease oil demand as more people stay at home. Stocks did drop but then recovered pretty quickly again traders taking the view that London would be back on its feet very quickly. London's experience of terror activity has certainly made the people and traders less likely to react in a panicky way and this is reflected in the financial markets.


War and Terrorism 

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