European stocks plunge at open on Trump win

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LONDON: European stocks tumbled in opening deals on Wednesday after Donald Trump was elected US president, beating market favourite Hillary Clinton and sparking investor fears over the world economy.

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In initial deals, London’s benchmark FTSE 100 index shed 1.87 percent to 6,718.85 points, Frankfurt’s DAX 30 dived 2.9 percent to 10,181.89 points and the Paris CAC 40 index slid 2.8 percent to 4,350.07 compared with Tuesday’s close.

Republican Trump defeated his Democratic rival to become the 45th president of the United States, sending shockwaves across global world stock markets.

“This is another black swan for European stocks—despite Brexit, markets were still not prepared for a Trump win and stocks will bear the biggest brunt for it,” City Index analyst Ken Odeluga told Agence France-Presse.

“It is a long-term negative for global growth because of the protectionist instincts of President Donald Trump.

“Global trade will be curbed and the biggest multinationals face challenges to revenue growth as the expansion of globalization itself comes into question.” AFP

AFP/CC

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