TBILISI(BPI)- Stocks across Europe are crashing on Wednesday after it was confirmed that Donald Trump is the next president of the United States.
All of Europe’s biggest bourses are significantly down soon after the European open, crashing lower thanks to the uncertainty that a Trump presidency brings to the markets.
Trump and his economic positions are seen as far less predictable than those of Hillary Clinton, and do not always follow party orthodoxy. As such he is perceived as more of a political risk than Clinton, causing the huge reactions in the markets overnight, which have continued into European trade.
While a Clinton victory would’ve likely boosted stocks a bit, J ohn Higgins, chief markets economist at Capital Economics argued earlier that a Trump win would pull things in the “opposite direction.”
And as things stand in the European trading on Wednesday, that’s more or less what we’ve been seeing.
The Euro Stoxx 50 broad index, which tracks Europe’s biggest companies, is off 2.6%:
“A Trump Presidency will probably have mixed implications for businesses in the US. Trump advocates lower corporate taxes, but he has also suggested that he would try to curtail the ability of companies to freely move capital out of the country,” HSBC’s chief US economist Kevin Logan said in a note circulated on Wednesday morning.