LSEG London Stock Exchange Group Plc

After an initial wobble, financial markets mainly shrugged off the effects of Friday's terrorist attacks in Paris, underscoring how investors increasingly look beyond the individual atrocities that are hitting their cities.

With investors focusing on central banks and Chinese growth, markets, from equity to bonds and gold, were little disrupted by the killing of at least 129 people in Paris. Financial markets have recovered in comparable terror attacks in Madrid in 2004 and London a year later, but the speed with which these assets regrouped on Monday suggests investors have become more used to terror on their own streets.

"Sadly, there's an understanding this is part of the world we live in," said David Vickers, a senior portfolio manager at Russell Investments, which has around $237 billion in assets under management.

After a brief dip in early trade, the Stoxx Europe 600 was 0.3% higher midway through the session. France's CAC 40, which fell more than 1% in early trade, was up 0.1%.

Among traditional safe-haven investments, gold initially gained and government bonds benefited, with the yield on German 10-year debt 0.01 percentage point lower at 0.55%. But these moves were seen as muted.

The negative impact on stock markets has diminished with every major terrorist attack after the Sept. 11, 2001 attacks, including the bombings in Madrid and London and the Boston marathon bombings in 2013, according to research by the University of Cisneros in Madrid.

After the Sept. 11, the New York Stock Exchange fell 7.1% on its first day of trading and ended the week down 14%. Investors jumped into safe haven assets such as government debt and gold, with that metal gaining by 6.5% its first post-attack trading day.

After explosions on trains in Madrid left around 191 people dead in 2004, Spain's IBEX35 share index closed 2.2% lower, while the 10-year German bund fell two basis points to 3.90%.

After the London bombings in July 2005, the FTSE 100 closed down 1.4% and crude prices on the New York Mercantile Exchange fell almost 4%.

In both Madrid and London, however, markets soon recovered, and their currencies were little affected.

Investors say reactions to terrorist attacks are increasingly fleeting, because of their frequency and as markets conclude that such atrocities have relatively little economic impact.

Consumer spending in the U.K. and Spain, for instance, even climbed in the wake of the bombings in their countries, according to Germany's Berenberg Bank.

Terrorist attacks on developing countries have also done little to shake investors, who have now become used to such mayhem. After two bombs killed at least 97 people outside Ankara's central rail station in October, the Turkish BIST 100 index closed down 0.1% and the lira edged down only 0.45% against the dollar.

Kit Juckes, a strategist at Societe Generale, remembers his reaction to the attacks on Sept. 11.

"Then, we stood and stared, in shock," he said. "But we've moved on (and are now) more appalled than shocked."

Investors say that the sheer scale of the Sept. 11 attacks single them out. But they also believe that the relatively short-lived market impact of terror attacks since 2001 means that they were reluctant to make shifts in their portfolios on Monday.

After a number of meetings this morning, Mr. Vickers said investors at the firm were "coming up light" on ideas for potential portfolio changes.

Instead, the main drivers for stock markets remain the slowing Chinese economy coupled with anticipated shifts in eurozone and U.S. monetary policy, he said.

Such economic fundamentals are even crowding out traditional safe-haven flows. Gold gained 1% in London in early morning trade but was up only 0.21% by mid-afternoon. Instead, the metal continues to be swayed by a growing anticipation that the Federal Reserve will raise rates this year, a move that would make gold less competitive with yield bearing assets.

On Monday, oil also lost its early gains. Brent, the global oil benchmark, gained 1% to $44.93 a barrel as France escalated its air campaign against Islamic State, increasing uncertainties in the Middle East. But by early afternoon, Brent had fallen as investors refocused on fundamentals, in particular the effect of oversupply in this market.

Of course, were Friday to herald a speedy escalation of attacks in western countries, then most analysts agree the impact could be more severe as it hits travel, government spending and consumer confidence.

Longer terms effects from Friday's attack may come from its impact on current debates over the structure of the European Union. Amid security concerns, governments may begin looking at re-erecting national boundaries, something several have already done during the current rise of immigration into the region.

"The more problems we have related to borderless countries, the more pressure will come for change, and that has long-term implications for Europe," said Derek Halpenny, European Head of Global Markets Research, Bank of Tokyo-Mitsubishi.

Neanda Salvaterra and Riva Gold also contributed to this article.

Write to Tommy Stubbington at tommy.stubbington@wsj.com, Chiara Albanese at chiara.albanese@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com

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(END) Dow Jones Newswires

November 16, 2015 11:15 ET (16:15 GMT)

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