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European stocks drop as US election race tightens

European stocks slid this morning in early trade as the race for the White House remained too close to call. 

London’s FTSE index had dipped 0.1%, while the Paris CAC was down 0.3% and the Frankfurt DAX dropped 1.1% in early trade.

Dublin’s ISEQ index was also lower, dropping 1% in the first half hour or so of trade.

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. 

Banks, oil and gas 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%.

Wall Street
stocks saw a buoyant election day session yesterday, finishing solidly
higher amid hopes of a straightforward outcome to a contentious
presidential campaign. 

The Dow Jones rose 2.1% to finish at 27,480, adding to the gains from a positive session on Monday that won back a fraction of last week’s losses. The broad-based S&P 500 advanced 1.8% to end at 3,369 while the tech-rich Nasdaq Composite index gained 1.9% to close at 11,160.

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