Markets reaction to US election

While the bearish sentiment that engulfed European equities in recent weeks is being vindicated, health-care stocks are easing the pain. On Wednesday, the region’s largest industry group headed for its biggest jump in two months, tempering losses for equity benchmarks after Donald Trump won the race to govern the region’s biggest export market.

Still, risk aversion was evident among most other industry groups. The Stoxx Europe 600 Index lost 0.5 percent at 10:36 a.m. in London, trimming an earlier drop of as much as 2.4 percent, with automakers leading declines.

Across Europe, Germany’s DAX Index lost 0.9 percent, led by Daimler. In France the CAC 40 Index fell 1.2 percent, led by Renault SA, while the U.K.’s FTSE 100 Index slid 0.2 percent, dragged by J Sainsbury Plc. Spain, Portugal and Italy posted the biggest losses in Europe.

European companies get about 17 percent of their total revenue from North America, with those in Belgium, Ireland and Switzerland among the most exposed, Morgan Stanley estimated in May. Europe is also the only region in the world that gets the majority of its sales from overseas, making it particularly vulnerable to global economic and political risks and to currency fluctuations. While the euro was little changed, it earlier rose as much as 2.5 percent against the dollar. A stronger euro makes European products less competitive abroad.

Asian stocks have fallen as Donald Trump looked increasingly likely to become new US president. All regional markets are lower, with money flowing into safe haven stocks, gold and currencies including the yen. Japan’s Nikkei 225 closed down by 5.4%. Traders had expected a comfortable Hillary Clinton win.

US stock futures fell sharply with the Dow Jones index expected to lose more than 4% - 800 points when it reopens