European shares initially fell on the news that Republican nominee and political outsider Donald Trump won the U.S. presidential election in a stunning upset over Democratic challenger Hillary Clinton, but losses have slowed in the hours since.
At 12:50 p.m. local time, Germany's DAX is 1.5 per cent lower at 10,330, while Britain's FTSE 100 index is down 0.6 per cent at 6,802.
Italy’s FTSE MIB is one of the worst performers, down almost 2.4%. Trump’s victory is fuelling predictions that the Italian public could reject constitutional reforms in a referendum scheduled for early December.
The STOXX Europe 600 index fell 1.1 per cent, but well off earlier lows. Growth-sensitive sectors such as autos, financials and oil firms were among the biggest laggards.
The Dow Jones industrial average is expected to drop by over 374 points, or around 2%.
“The market wanted the certainty and clarity of a Clinton—it may not agree with all of her policy proposals, but it was comfortable with gridlock,” said Brian Gardner, head of Washington research for the investment bank Keefe, Bruyette & Woods.
Italy’s FTSE MIB is one of the worst performers, down almost 2.4%. Trump’s victory is fuelling predictions that the Italian public could reject constitutional reforms in a referendum scheduled for early December.
The STOXX Europe 600 index fell 1.1 per cent, but well off earlier lows. Growth-sensitive sectors such as autos, financials and oil firms were among the biggest laggards.
The Dow Jones industrial average is expected to drop by over 374 points, or around 2%.
“The market wanted the certainty and clarity of a Clinton—it may not agree with all of her policy proposals, but it was comfortable with gridlock,” said Brian Gardner, head of Washington research for the investment bank Keefe, Bruyette & Woods.
In the wake of Trump's victory speech, the Russian ruble remains stable while the country's stocks are on the
rise.
rise.
Safe havens, seen as outperforming in times of uncertainty, rose. Swiss stocks were up 0.7 per cent, and health care stocks, which faced tougher regulation under a Clinton presidency, rose 2.6 per cent.
Health care stocks were the standout sector performers, up 2.4 per cent in early trades as potential risks to pricing practices in the U.S. significantly reduced with a Trump win.
Source: CBC
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