Stock and bond market reaction to the weekend Paris terrorist attacks was relatively muted although classic safe havens such as gold and short dated government bonds saw buying on Monday morning. Some weakness in the Euro was expected but the currency had already come under pressure last week from short sellers in anticipation of extended QE by the European Central Bank which had sent it to 6 month lows against the US dollar. Similarly, the UK’s FTSE 100 index was up marginally in early trading as the large oil, mining and industrial sectors bounced back from heavy selling last week on concerns for global growth. However, the defensive sectors in tobacco and pharmaceutical were notable early risers. Travel and leisure were unsurprisingly sold off. Aerospace and defence rose across the European markets generally as reports emerged of an escalation of bombing raids against ISIL targets in Syria. The futures markets indicate a similar reaction in New York and suggests that markets are more focused on central bank action in the US, Europe and Japan.