[Financial Times] European Markets Crash After Eiffel Tower Falls

 As expected, market reaction to the shocking attacks earlier last week have 

not been pleasant.

September 8th, 1998


European financial markets suffered their sharpest five-day losses in over 3 decades on Monday, following 

a devastating terrorist attack that brought down the Eiffel Tower in central Paris, killing hundreds and 

wounding even more. The symbolic heart of the French capital was reduced to rubble in what officials have

called “an unprecedented act of war on French soil.”

 

The CAC 40 index plunged 9.3%, wiping out over USD120 billion in market value. London’s FTSE 100 fell 

5.7%, and Frankfurt’s DAX lost 6.2%, as shockwaves rippled through European equities. Bond yields 

surged amid a flight to safety, and the euro dropped sharply against the dollar and yen.

 

U.S. markets, closed at the time of the attack, are expected to open sharply lower Tuesday. Futures on the 

S&P 500 were down 4% in after-hours trading, while gold surged to a six-year high as investors rushed to 

safe havens.

 

Security officials across Europe have heightened alerts, with travel restrictions imposed in major capitals 

including London, Rome, and Berlin. Analysts say the attack may have lasting effects on risk appetite, 

foreign investment, and consumer sentiment across Europe. “Markets can digest bad news. What they can’t

handle is existential uncertainty,” said Pavana Jaishankar of Deutsche Bank. “This attack has pierced the 

illusion of invulnerability in Western capitals.”

 

As the rubble of the Eiffel Tower still smolders, France and the broader European Union face not just a 

security crisis, but a crisis of confidence.

Location: London, UK

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