US election results: European markets set for sharp falls on a Trump presidency

European stocks were trading lower on Wednesday morning after Democrat candidate Hillary Clinton called Donald Trump to concede the U.S. Presidential election.

The Pan-European Stoxx 600 was 2 percent lower on early morning trading. Autos and Banks’ stocks were leading the falls, dropping more than 3 percent.

Healthcare was the only sector up following the news that Donald Trump will be the next U.S. President. According to Liberum, the Trump victory supports the pharmaceutical sector given that drug pricing reforms, proposed by Hillary Clinton, are unlikely to materialize.

Novo Nordisk’s shares were up by more than 6 percent.

Trump will begin his term on Inauguration Day, on January 20. “Until then, President Obama and the current Congress will preside over what is known as the “Lame Duck” session. During this period we expect the omnibus bill to fund non-discretionary federal spending to be passed, and to decide the fate of a few expiring tax provisions,” Citi said in a report.

Speaking shortly after receiving Clinton’s call, Donald Trump claimed he would seek unity, not hostility.

Brent crude was 0.96 percent lower at the open on Wednesday trading at $45.57 a barrel. WTI started contracting 1.27 percent selling at $44.42 a barrel.

Sainsbury’s said Wednesday that it is concerned over rising inflation after reporting a pre-tax profit drop of almost 10 percent to £372 million ($461 million) in the first six months of 2016. Total group sales climbed 1.8 percent to £12.6 billion

Burberry and Carlsberg also report their third-quarter earnings.

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

Source: CNBC