European stocks drop as US election race tightens

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Traders keeping a close eye on the US election vote. Photo: Getty Images
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Thomson Reuters

European stocks slid on Wednesday as US President Donald Trump took the lead over Democratic rival Joe Biden in a number of vital swing states, making the race for the White House too close to call.

The pan-European STOXX 600 index fell 1.2% by 8:05am, while the German DAX shed 1.8% and UK's FTSE lost 1.2%.

New York's S&P 500 futures slid 0.6% after volatile trading overnight, while those in the tech-heavy Nasdaq gained 1.0%.

Adding to uncertainty, Trump falsely claimed that he had won the US election, and said that "they" were trying to steal the election, without providing evidence. He said he would go the US Supreme Court to fight for the win if needed.

Earlier this week, money managers had bet on a clear victory for Biden in the election, boosting European equities, as investors anticipated better trade ties with Washington and more economic stimulus for the coronavirus-hit US economy.

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Banks, oil and mining stocks fell more than 3% after leading a surge in markets this week as investors unwound bets of a Biden sweep that could support the growth-sensitive sectors.

Trade-exposed auto stocks also fell 2.7%. - Reuters

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