European equity investors brace for volatility amid US election uncertainty

Short-term shock, medium-term economic impact 'neutral'

European equity markets opened lower this morning in response to the shock uncertainty over the outcome of the US Presidential Election, with the as-yet unclear result set to create near-term volatility and myriad of different implications for the continent’s outlook.

Investors in Europe and betting firms had been pricing in a decisive victory for Democratic challenger Joe Biden, but a much closer contest than anticipated and incumbent President Donald Trump's suggestion he could prevent further vote counting has seen markets move downwards. 'The worst outcome for markets': 'Electoral paralysis' as Trump bids to halt vote counting European equity markets opened with a decline in response to the early polls with the Euro Stoxx 50 and DAX down by around 1% in early trading, and Madrid's IBEX 35 faring worst with a decline of nearly 2%. The euro and s...