European markets opened higher on Wednesday, following gains on Wall Street as Donald Trump appeared poised to secure the US presidency. The Stoxx Europe 600 index, a key indicator for the region, saw a 1.3% increase. Germany’s DAX and France’s CAC also experienced rises of 0.9% and 1.3% respectively, while London’s FTSE 100 traded 1.1% higher.
Chief Investment Officer at Swiss investment bank UBS, highlighted concerns regarding the potential impact of Trump's policies on European companies. He noted that approximately a quarter of European listed companies' sales are to the US, but emphasized that most of these sales are not direct exports, as many goods sold by European companies in the US are actually produced within the country.
Head of money and markets at financial services firm Hargreaves Lansdown, pointed out that Trump's unconventional trade approach could lead to the US distancing itself from global institutions and established rules. However, there is optimism that a Trump presidency may result in reduced regulations for major tech and finance companies.
