“We now have a much clearer picture of the extent of what happened in Paris, and the markets have pretty much all taken it in their stride,” said Mr Lucas.

“There will be limited impact on the economic performance of France, or Europe as a whole, with this one-off attack, so there should be limited impact on the market.”

AMP Capital's head of investment strategy and chief economist, Shane Oliver, said while the events in Paris are a terrible reminder of the terror threat posed to countries participating in the efforts to combat IS, previous experiences of terrorist attacks show they only have a short-term impact on markets.

“There is no doubt that the attacks in Paris will contribute to short-term investor nervousness but the experience with various Al Qaida-related attacks last decade is worth recalling: after an initial negative impact, share markets bounced back as it was clear that there would not be a major economic impact,” said Mr Oliver.

“It only took just over a month for the US share market to recover from its 12 per cent post 9/11 slump and it took the UK share market one day to bounce back from its 1.4 per cent fall on the day of the July 2005 London bombings.”

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