Global stocks recover from early selloff; safe-haven assets ease

Tue Mar 22, 2016 4:29pm EDT
 
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By Chuck Mikolajczak

NEW York (Reuters) - Global equity markets were little changed, regrouping from early losses while safe-haven gold and government bonds eased from higher levels on Tuesday following attacks on the airport and a rush-hour metro train in Brussels.

Islamic State claimed responsibility for suicide bomb attacks in the Belgian capital that killed at least 30 people, with police hunting a suspect who fled the air terminal.

Travel sector stocks, including airlines and hotels, were among the hardest-hit, although equities managed to recover from sharp losses and bonds and gold eased from their early highs.

On Wall Street, the NYSEArca airline index .XAL lost 0.9 percent and was on track for its first decline in five sessions. Cruise ship operators Royal Caribbean RCL.N, down 2.9 percent and Carnival Corp CCL.N, down 2.1 percent, were among the worst performers on the S&P 500.

Those declines were offset by gains in Apple AAPL.O, up 0.8 percent to $106.72 and a 0.9 percent gain in the healthcare .SPXHC sector.

"The news obviously has been dominated by what has gone on in Brussels, but experience tells us not only is it the morally right thing to do to basically not overreact, it also turns out to be the most profitable thing to do," said David Kelly, chief global strategist at JPMorgan Funds in New York.

"The objective of terrorists is to disrupt and, to the extent that they can, do horrible things but at least we have the small victory that they have not disrupted global financial markets today."

The Dow Jones industrial average .DJI fell 41.3 points, or 0.23 percent, to 17,582.57, the S&P 500 .SPX lost 1.8 points, or 0.09 percent, to 2,049.8 and the Nasdaq Composite .IXIC added 12.79 points, or 0.27 percent, to 4,821.66.   Continued...

 
Traders work on the floor of the New York Stock Exchange (NYSE) March 22, 2016. REUTERS/Brendan McDermid