- Title: European shares fall at market opening after Trump elected U.S. president
- Date: 9th November 2016
- Summary: FRANKFURT, GERMANY (NOVEMBER 9, 2016) (REUTERS) WIDE OF TRADING FLOOR IN FRANKFURT STOCK EXCHANGE TRADERS DAX INDEX OPENING TRADER CLOSE UP OF BOARD SHOWING DAX CLOSING AT 10482.32 POINTS TRADING FLOOR VARIOUS OF DAX OPENING TRADER VARIOUS OF DAX FALLING (SOUNDBITE) (English) ING DIBA HEAD ECONOMIST, CARSTEN BRZESKI, SAYING: "I think markets were really caught by surprise. They thought and expected Mrs. Clinton to win and what we now are going to see is the wrong outcome in the eyes of the markets. So we are going to get a sell-off on stocks markets drop, we are going to get a weaker dollar...And for markets it is a deja-vu, it is a 'Brexit 2,0', and it is going to take a couple of days, maybe weeks, before they have re-digested the outcome." TRADER (SOUNDBITE) (English) ING DIBA HEAD ECONOMIST, CARSTEN BRZESKI, SAYING: "I think first of all markets did not expect the US voters really to go for Mr Trump. And the second is no one really has a clue on what Mr. Trump really stands for. I think we have no idea what his economic platform or his economic agenda will be, whether there is going to be more protectionism, whether there is going to be a clear spurge in government debt in the US. And again, this uncertainty is something that is poison for financial markets" TRADER (SOUNDBITE) (English) ING DIBA HEAD ECONOMIST, CARSTEN BRZESKI, SAYING: "If President Trump would really go for more protectionism it would be bad news for Europe and Germany. The US is a really important trading partner for Europe, it is the biggest export country for the German economy, for example. So if we get more protectionism this is bad news for exports. And exports are an important growth driver for Europe and for the Eurozone, so therefore I think we have to be prepared for much more tension, for much worse times to come." TRADING FLOOR
- Embargoed: 24th November 2016 09:05
- Keywords: US election Donald Trump Europe DAX index shares
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA00157Q4CW7
- Aspect Ratio: 16:9
- Story Text: European shares fell at opening on Wednesday (November 9) after Republican nominee and political outsider Donald Trump won the U.S. presidential election, bringing uncertainty which roiled global markets.
The STOXX Europe 600 fell 1.1 percent, but well off earlier lows. Growth-sensitive sectors such as autos, financials and oil firms were among the biggest laggards.
Markets had priced a win for Democrat Hillary Clinton, who was seen as a status quo option. There is substantial uncertainty about Trump's policy positions, as well as market scepticism over his views on topics such as trade.
Carsten Brzeski, head economist at ING Diba, said the effect reminded of the 'Brexit' vote in the United Kingdom.
"I think markets were really caught by surprise. They thought and expected Mrs. Clinton to win and what we now are going to see is the wrong outcome in the eyes of the markets. So we are going to get a sell-off on stocks markets drop, we are going to get a weaker dollar...And for markets it is a deja-vu, it is a 'Brexit 2.0', and it is going to take a couple of days, maybe weeks, before they have re-digested the outcome," he said, adding that the main worries lay on Trump's promises for higher protectionism.
"If President Trump would really go for more protectionism it would be bad news for Europe and Germany. The US is a really important trading partner for Europe, it is the biggest export country for the German economy, for example. So if we get more protectionism this is bad news for exports. And exports are an important growth driver for Europe and for the Eurozone, so therefore I think we have to be prepared for much more tension, for much worse times to come," he said.
Initial indicators had suggested falls of up to four percent at the open. Shortly before European markets opened, Trump gave a victory speech in which he said he would seek common ground and not hostility, seeking to work with other nations and to bring the country together.
Safe havens, seen as outperforming in times of uncertainty, rose. Swiss stocks were up 0.7 percent, and health care stocks, which faced tougher regulation under a Clinton presidency, rose 2.6 percent.
Healthcare stocks were the standout sector performers, up 2.4 percent in early trades as potential risks to pricing practices in the U.S. significantly reduced with a Trump win.
Gold miners were poised for a strong day as the precious metal enjoyed its best day since Britain's vote to leave the EU. Fresnillo rose 10 percent, also helped by a slumping Mexican peso, and was the best performing stock across the Stoxx 600. - Copyright Holder: REUTERS
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