As shocking as the deadly attacks in Paris are, share markets and business confidence have recovered fairly quickly to similar events around the world in the past.
That's the view of Australian Chamber of Commerce and Industry boss Kate Carnell as the Australian stock market tumbled a little over 0.5 per cent by midday on Monday, the first trading session since the terrorist attacks in the French capital on Friday.
Past experience of major terrorist attacks showed share markets recovered within a couple of days and consumer spending quickly as well.
"I think now people have come to grips with fact that we live in a very unstable and very challenging world," Ms Carnell told reporters in Canberra.
The potential knock to confidence came as a new report shows small business is slowly benefiting from the "Turnbull effect" and the all-round lift in sentiment.
Ms Carnell said the change of prime minister had lifted spirits on the belief there was now good leadership and a plan for the future.
"The challenge for the Turnbull government, the rhetoric is good ... but it really does put pressure on them to deliver on solid policies in the run-up to the election."
The chamber's survey for the September quarter shows while there is an improvement in trading conditions and confidence, for small business they are still lagging their larger counterparts.
Conditions edged up to an index of 42.6 points in the September quarter from 42.3 in the previous months.
This is the first increase in over a year and brings the index to about its five-year average, albeit remaining below the crucial 50-point mark that separates expansion from contraction.
Likewise, the index for expected economic performance over the next 12 months rose to 45.4 points from 44.3 after falling for five consecutive quarters.
"Things are improving but they are improving reasonably slowly ... it's like pulling teeth," Ms Carnell said.
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