Did the markets miss what happened in Vegas?
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It’s the morning after the Vegas shooting. Over 50 innocent lives lost in another act of random violence that has shocked every decent person to their core.
Everyone except the markets, it seems, despite it being the deadliest shooting in modern US history.
Predictably, gun stocks have soared while the value of MGM shares (the company that own the hotel chain that was the scene of the massacre) have plummeted.
But for Wall Street and the other markets it’s almost like it never happened.
But imagine yourself, if you can, in America’s playground today. What would you be doing?
How many people are out and about enjoying what makes Vegas what it is?
How many have decided to end their visit early and go home?
How many others have decided to cancel their trip to Sin City?
How much money that would have been spent in Vegas today and in the coming weeks is going to stay at home. Probably billions, but that disturbance to the economy is being treated like a scraped knee.
In Catalunya, violence during the referendum for independence from Spain saw 850 people injured. It also had a direct effect on the value of the Euro. It’s likely to have an ongoing influence on Euro/Dollar trading as the aftermath and implications of the Catalan vote are factored in.
It could be argued that the two events shouldn’t be compared. It’s a valid argument until the memory is cast back to how the markets reacted to the 9/11 attacks.
Every event that has a direct effect on the flow of a significant amount of money has an effect on the markets. It’s like taking some of the oxygen out of the air – it’s going to get harder to breathe.
Vegas is one of the US’s biggest tourist destinations. Over 250,000 people work in hotels, restaurants, bars and casinos in the area. An additional 100,000 jobs rely on tourism by providing services to the industry.
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