Of course, Europe is no stranger to Islamist terrorist attacks and it has recovered before after such attacks, increasing surveillance and security measures in the process. From the 2004 Madrid train bombings, believed to have been carried out by an al-Qaeda-inspired terrorist cell, to the 2005 bombing in London, the macroeconomic impact of these previous attacks have tended to be limited.
If the latest Paris attack heralded the start of a "sustained campaign," however, things could change rapidly in the region, according to JPMorgan analysts Malcolm Barr and David Mackie.
"As long as the Paris attacks are not the start of a sustained campaign, our judgment is that the macroeconomic consequences will be limited and short-lived," the analysts said in a note Monday.
"Events in Paris may influence other difficult issues in the region, such as managing migration flows and the Brexit debate in the UK. But, assuming it is a one-off, these effects would likely be modest. Of course, if the Paris attacks are the beginning of a sustained campaign, the macroeconomic consequences would be much more significant."
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld