Paris attacks create uncertainty in Australian stock market

The Australian share market is lower at noon (AEDT) as the Paris terror attacks create uncertainty and trepidation among investors.

Only the gold stocks were performing strongly, with Newcrest Mining up five per cent, Evolution Mining up four per cent and Regis Resources up 3.75 per cent.

Gold is considered a strong defensive stock, providing stability and returns amid uncertainty.


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Elsewhere among commodities, results were mixed, with BHP Billiton up one per cent while Rio Tinto was down about two per cent.

The big banks were all lower.

 

 

However, Australian Chamber of Commerce and Industry boss  Kate Carnell says it’s nothing unexpected.

Past experience of major terrorist attacks showed share markets recovered within a couple of days and consumer spending quickly as well.

“I think now people have come to grips with fact that we live in a very unstable and very challenging world,” Ms Carnell told reporters in Canberra.

The potential knock to confidence came as a new report shows small business is slowly benefiting from the “Turnbull effect” and the all-round lift in sentiment.

Ms Carnell said the change of prime minister had lifted spirits on the belief there was now good leadership and a plan for the future.

“The challenge for the Turnbull government, the rhetoric is good … but it really does put pressure on them to deliver on solid policies in the run-up to the election.”

The chamber’s survey for the September quarter shows while there is an improvement in trading conditions and confidence, for small business they are still lagging their larger counterparts.

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