Global markets, which have surged 20 percent over the last week held onto those gains after the US election result, except in Europe, which got a cold shower on Wednesday after six straight days of gains.
The dollar also rose off its historic low against the euro reached yesterday, when it suffered its biggest ever one-day loss against the single currency.
“Everyone knows the biggest challenge certainly in the short term has got to be the economy, and that won’t be easy to turn around. There’s a big fiscal stimulus package out there, there’s a big rescue package that’s been put in place. It’ll be interesting to see when we get the detail of those, how quickly they can be pushed through, and exactly what that will entail,” says Barclay’s Henk Potts.
Analysts and experts are unanimous. With the election out of the way hard economic facts are back in the spotlight, and Europe did not like what it saw today.
Banks, energy, and pharmaceuticals all led European stocks down, with everyone nursing losses of around two percent, except for the Spanish and Italians, who more or less broke even.