Trump’s triumph: European Stocks Nosedive

US election sends FTSE down 1.8%, DAX down 2.5% and CAC 40 down 2.9%

European stock markets plunged on Wednesday as markets reacted to Donald Trump’s shock US election victory. The FTSE 100 closed down 118 points, or 1.8%, at 6,590, while the DAX fell 342 points, or 2.5%, to 13,400. The CAC 40 was the worst performer, tumbling 161 points, or 2.9%, to 5,371.

The sell-off was triggered by the election of Donald Trump, who has pledged to renegotiate trade deals with the EU and Mexico, and to impose tariffs on Chinese goods. Investors are concerned that these policies could lead to a trade war, which would damage the global economy.

Banks and miners hit hard

Banks and miners were the worst-hit sectors on Wednesday, with the likes of Barclays, HSBC and Rio Tinto all falling sharply. This was due to concerns that Trump’s policies could lead to higher interest rates and a slowdown in the global economy.

The sell-off on Wednesday was the biggest one-day fall for European stocks since the Brexit vote in June. It is a sign of the uncertainty that investors are feeling about the future of the global economy under Trump.

What next for European stocks?

It is too early to say what the long-term impact of Trump’s victory will be on European stocks. However, it is clear that investors are concerned about the potential for a trade war and a slowdown in the global economy.

In the short term, it is likely that European stocks will continue to be volatile. However, in the long term, the performance of European stocks will depend on the policies that Trump implements and the response of the global economy.

Conclusion

The election of Donald Trump has sent shockwaves through the global economy. European stocks have been hit hard, and it is clear that investors are concerned about the potential for a trade war and a slowdown in the global economy. It is too early to say what the long-term impact of Trump’s victory will be, but it is clear that investors are worried about the future.