European markets set for sharp falls on election jitters

European bourses are set for a troubled day as initial U.S. exit polls show Republican presidential candidate Donald Trump outperforming in the polls.

The FTSE 100 is expected to start the day trading 237 points lower, opening at 6,601, the German DAX should drop 415 points at 10,053 and the French CAC is seen falling 171 points to 4,200.

According toNBC News, Donald Trump has won a raft of key states in the race to the White House including Alabama Iowa, Idaho,South Carolina, Montana and Texas. Meanwhile Hillary Clinton has won in a number of states including California, Illinois, Maryland, Massachusetts, New Mexico, New Jersey, New York, Rhode Island, Vermont and Washington.

The Republicans are set to retain the six-year control over the U.S. House of Representatives. The results are still coming in.

The U.S. dollar sank and stock markets in Asia contracted more than 5 percent on Wednesday morning in Asia. Investors have started rushing for safe haven, sending Dollar/yen as high as 105.46 during Asian trading.

Wednesday’s European trading day is also set for sharp drops in the price of oil and increases in the price of gold.

Sainsbury’s, Burberry and Carlsberg will report their quarter-three earnings.

Also on the calendar, the European Commission is publishing its autumn economic forecasts.

Source: CNBC