The markets rebounded after Friday’s deadly Paris attacks as energy shares rallied on the concerns of increased violence in the Middle East. The S&P 500 index added 30.15%, or 1.49%, to trade at 2,053.19. The Dow Jones Industrial Average gained 237.77 points, or 1.38%, to trade at 17,483.01 and the Nasdaq Composite rose 56.73 points, or 1.15%, to close Monday’s trading session at 4,984.62. The Dow’s energy sector led the gainers with nearly 238 points added. Safe-haven assets, including gold and U.S. treasuries were also strengthened, while companies related to tourism, such as luxury goods and airlines were lower. Monday’s strong gains have more than made up for Friday’s stark declines that saw major benchmarks suffer their worst week of losses since August’s turbulent trading atmosphere. The market has been plagued recently by weakness in commodities and the prospect of rising U.S. interest rates in December.
Crude oil tumbled in the beginning of session, falling to just 6 cents over $40 a barrel, only to rebound nearly 2.5% later in the day to trade at $41.74 as increased violence in the Middle East became a major concern. The French government has already begun its retaliatory actions against the Islamic State as major ISIS command centers were bombarded. Monday’s gains weren’t sufficient to pare last week’s 8% in the price of oil, the largest weekly percent-based decline since early March.
European shares were mixed on Monday as the markets reacted to Friday’s Paris attacks. The French CAC 40 started the day around 1% lower but later pared losses to close with a small 0.08% decline at 4,804.31 as the travel sector expectedly suffered declines. The Stoxx Europe 600 also recovered from a weak early session to close 0.3% higher at 370.64 as defense-related shares saw marked gains. Travel-related shares led the declines as Air France tumbled 5.67% and the French Accor SA (PA:ACCP) moved 4.71% lower, while Charles de Gaulle Airport operator Aeroports De Paris SA (PA:ADP) fell 3.7%. Defense-related shares were higher, with Rolls-Royce (L:RR) adding 2.82% and BAE Systems (L:BAES) gaining 2.45%. The German DAX 30 posted minor gains, adding less than 0.1% to trade at 10,713.23. The UK’s FTSE 100 rose 0.46% to trade at 6,146.38.
This week’s major economic data releases continue today with the release of UK inflation data, followed by statements from the Federal Reserve on Wednesday. The Bank of Japan will post its interest rate decision on Thursday, followed by the yearly Canadian inflation rate later on Friday.