European shares open Wednesday higher as Trump wins US elections

(MENAFN) European stock markets opened higher on Wednesday, responding to early indicators from the U.S. election suggesting a strong likelihood of Republican candidate Donald Trump securing a return to the White House. Investors appeared to react positively, driving up key indexes across several major European exchanges.

The pan-European STOXX Europe 600, which represents around 90 percent of the market capitalization of European markets across 17 countries, rose by 1.17 percent to reach 515.46 points as of 08:11 GMT. This broad increase reflects a collective market optimism, particularly in sectors likely to benefit from the anticipated U.S. policy shifts under a potential Trump administration.

Germany's DAX 30 index gained 1 percent, reaching 19,445.75 points, while France's CAC 40 climbed by 1.20 percent to 7,496.19 points. The UK’s FTSE 100 also showed strength, increasing 1.03 percent to 8,256.71 points, and Italy’s FTSE MIB rose by 0.70 percent, reaching 34,714.00 points. In contrast, Spain’s IBEX 35 experienced a minor setback, declining by 0.91 percent to settle at 11,731.20 points.

Additionally, the dollar strengthened on the election outcome, impacting the euro-dollar exchange rate, which fell by 1.73 percent to 1.0741. This decline in the euro reflects investor sentiment favoring the dollar, as markets consider the possible policy and economic implications of a Trump presidency on transatlantic trade and fiscal policy.

MENAFN06112024000045015839ID1108856861