Global stocks are set for a short-term sell-off on Monday after Islamist extrimist launched coordinated attacks across Paris that killed 129 people, but analysts said a prolonged economic impact or market reaction was unlikely.

President Francois Hollande has declared a state of emergency, ordering police and troops into the streets, and set three days of official mourning after the attacks he called an “act of war” by ISIS.

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Latest coverage as hunt continues for network behind Isis attack that left 129 people dead
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The carnage prompted condemnation by world leaders and outpourings of support for Parisians from around the globe, but would likely have only a knee-jerk impact on investment decisions, said Shane Oliver, chief economist at Australia’s AMP Capital in Sydney.

“History will tell us that if the economic impact is limited
- and I think it will be - that markets will quickly recover and go on to focus on other things,” Oliver, who is also head of strategy at the wealth management firm.

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