Europe in crisis

Markets have a habit of shaking off tragedies. But with Europe, says John Stepek – this time it's different.

Terrorist attacks, like natural disasters, are horrific wherever they occur. But when it happens closer to home, as with last week's Paris attacks, it's only human to feel the loss and the pain, and the fear of your fellows more keenly. That's one reason why the Paris attacks have had such a huge impact in the West at a time when the number of deaths globally from terrorism has been soaring in countries like Nigeria and Syria. But beyond that, do the Paris attacks have any more significance for the economy and for markets than, say, the Madrid bombings in 2004 did? Or the London bombings of July 2005?

I look at the issue in our cover story this week, but the short answer is that, while markets usually treat terror attacks in a similar way to natural disasters a brief spasm of fear and uncertainty, before a return to business as usual I don't think it'll be quite the same this time. That's not because of the nature of this attack itself, awful as it was it's more because of its timing, and the knock-on impact it has in highlighting the deep structural problems that are already putting Europe's governance under incredible pressure.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.