European stocks, euro retreat after US vote

European stock markets slid on Wednesday and the euro fell against the dollar as traders expected US President Barack Obama's re-election to be challenged quickly by a looming fiscal crisis, and the EU issued gloomy growth forecasts.

After rising in early exchanges as investors welcomed an end to the US political drama, equities and the European single currency headed south as attention switched to the challenging months ahead.

At the close of trading, London's FTSE 100 index of top companies had lost 1.58 percent to 5,791.63 points, Frankfurt's DAX 30 retreated 1.96 percent to 7,232.83 points and in Paris the CAC 40 shed 1.99 percent to 3,409.59.

Madrid's IBEX index lost 2.26 percent to 7,660.70 points as Spain's growth prospects grew darker.

In New York, US stock markets tumbled on expectations that Obama's re-election will set up a tough battle with Republicans over a feared "fiscal cliff".

Automatic US tax and spending measures totalling about $600 billion are scheduled for January 1 to curb a swollen US public deficit and debt if a compromise on graduated measures cannot be agreed between Obama and the US Congress.

In midday trades, the Dow Jones Industrial Average gave up 2.49 percent, the broad-based S&P 500 fell 2.46 percent and the Nasdaq Composite shed 2.56 percent.

"As we had anticipated, the focus has quickly moved on to the uncertainty over the 'fiscal cliff,' and perhaps back to the unsolved crisis in the euro-zone as well," noted Julian Jessop at Capital Economics.

Berenberg Bank economists Holger Schmieding and Rob Rood pointed to likely control by the Republican party of the US House of Representatives, noting that "continuing gridlock in Congress, as projected by the current incomplete results, is no surprise.

"But the election outcome will make it difficult to forge the required bipartisan compromises ahead of the looming fiscal cliff at the end of 2012," they said.

Obama also has to produce a long-term plan to deal with the US fiscal deficit, which the International Monetary Fund forecasts will reach 8.7 percent of output in 2013, the Berenberg economists added.

"If no action is taken in the next two months, automatic tax hikes and spending cuts will tighten the fiscal position by a huge 5.1 percent of GDP at the beginning of 2013.

"Without a compromise, the US will be heading for recession," they warned.

Meanwhile, analysts expected Obama's victory to spell status quo for the Federal Reserve's relaxed monetary policy.

"An Obama victory ensures the continuity of the US monetary policy, which is likely to be kept loose," SHK Financial strategist Daniel So told Dow Jones Newswires.

But after a brief rise versus the US currency, the euro fell to $1.2763 in late London deals, compared with $1.2814 late in New York on Tuesday.

The European single currency reversed direction as the European Commission slashed its eurozone economic growth forecast for next year to just 0.1 percent, six months after tipping a much stronger recovery of 1.0 percent.

Official data also revealed slumps in German and Spanish industrial output in September.

In Greece, lawmakers were to vote Wednesday on austerity measures needed to unlock international aid and stave off bankruptcy despite strikes and public anger against billions more euros in tax hikes and pension cuts.

The package includes 18.5 billion euros ($23.6 billion) in new spending cuts and other reforms by 2016.

Among corporate stocks, Munich Re shares closed with a loss of 0.20 percent at 127.35 euros in Frankfurt after the world's biggest reinsurer said it was raising its full-year profit forecast, despite the expected claims losses from megastorm Sandy that battered the United States last week.

"The result for the first three quarters is more than pleasing. Despite Hurricane Sandy, we are very optimistic of realising a profit in the region of 3.0 billion euros for 2012," said chief financial officer Joerg Schneider.

At the beginning of the year, Munich Re had envisaged a full-year profit of around 2.5 billion euros.

Asian stock markets closed mixed earlier in the day, while on the London Bullion Market, gold prices climbed to $1,715.25 an ounce from $1,691 on Tuesday.

burs-wai/arp

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • Stocks slip into losses in the afternoon after Yellen speech
    Stocks slip into losses in the afternoon after Yellen speech Associated Press - 1 hour 7 minutes ago

    Stocks were mostly lower on Wall Street in afternoon trading on Friday, giving up modest gains following a generally upbeat assessment of the economy from Fed Chair Janet Yellen. Phone companies and utilities, ... … More »

  • Dutch PM Mark Rutte announces third-term candidacy
    Dutch PM Mark Rutte announces third-term candidacy AFP News - 7 minutes ago

    Prime Minister Mark Rutte announced Friday his candidacy to head the Dutch government for a third succesive term in office, as the countdown moves towards next year's parliamentary polls. "Rutte also informed his top party leadership about his … More »

  • Canada PM Trudeau to mount charm offensive in China: officials
    Canada PM Trudeau to mount charm offensive in China: officials AFP News - 14 minutes ago

    Canadian Prime Minister will tour the Great Wall, shoot hoops with retired basketball star Yao Ming and host a roundtable of women entrepreneurs when he travels to China next week to bolster trade and diplomatic ties, his office said Friday. There … More »

  • Dollar up on Yellen's case for U.S. rate hike; stocks surrender gains
    Dollar up on Yellen's case for U.S. rate hike; stocks surrender gains Reuters - 15 minutes ago

    U.S. stocks gave up early gains in choppy trading on Friday, hurt by a surging U.S. dollar as investors grappled with the possible timing of an interest rate hike after comments from several Federal Reserve officials, including Chair Janet Yellen. … More »

  • Canada's peacekeeping pledges will have a 'big impact': UN
    Canada's peacekeeping pledges will have a 'big impact': UN AFP News - 30 minutes ago

    The United Nations on Friday applauded Canada's decision to commit 600 troops and funding to peacekeeping, saying it will have a big impact. UN officials will quickly begin talks with Ottawa to nail down the specific details of the contribution, … More »

  • Morales sees 'conspiracy' in Bolivia minister's murder
    Morales sees 'conspiracy' in Bolivia minister's murder AFP News - 31 minutes ago

    Bolivian President Evo Morales said Friday there was a "political conspiracy" against his government after protesting miners allegedly kidnapped, tortured and beat to death a deputy minister who tried to negotiate with them. Defense Minister Reymi … More »

  • Yellen's case for rate hike boosts dollar; stocks surrender gains
    Yellen's case for rate hike boosts dollar; stocks surrender gains Reuters - 59 minutes ago

    U.S. equities gave up early gains on Friday, hurt by a surging U.S. dollar after Federal Reserve Chair Janet Yellen said that the case for raising U.S. interest rates has strengthened in recent months. European stocks advanced, however, while oil … More »

  • Oil steady in volatile session, on track for weekly loss
    Oil steady in volatile session, on track for weekly loss Reuters - 1 hour 6 minutes ago

    Oil prices were largely unchanged on Friday in a volatile session, as traders reacted to comments from Fed Chair Janet Yellen and reports of missile activity in Saudi Arabia. The market was taking its cues from the movement in the dollar, which has … More »

  • 11 Turkish police killed in PKK suicide bombing
    11 Turkish police killed in PKK suicide bombing AFP News - 1 hour 22 minutes ago

    The outlawed Kurdistan Workers' Party (PKK) on Friday claimed a suicide truck bombing on a police building in Turkey's southeast that killed 11 officers and wounded dozens more. The blast came two days after the Turkish army launched an offensive … More »

  • Stada shareholder AOC says wants board change not break up
    Stada shareholder AOC says wants board change not break up Reuters - 1 hour 28 minutes ago

    Stada shareholder Active Ownership Capital (AOC) is looking to replace most of the German drugmaker's supervisory board on Friday but has no desire to break up the 120-year-old company, one of its founding partners said. AOC wants to replace six of … More »

  • Wall Street declines after Fischer's hawkish stance on rates
    Wall Street declines after Fischer's hawkish stance on rates Reuters - 1 hour 35 minutes ago

    Wall Street reversed course to trade lower on Friday afternoon after hawkish comments from Federal Reserve Vice Chair Stanley Fischer raised the specter of a rate hike as soon as next month. Fischer's comments came shortly after Fed Chair Janet … More »

  • Upbeat Yellen sees markets stir, but Dow drifts
    Upbeat Yellen sees markets stir, but Dow drifts AFP News - 1 hour 41 minutes ago

    European stock markets stirred Friday at the end of a tranquil week as Federal Reserve chief Janet Yellen indicated there was a case for raising US interest rates. Market watchers had been waiting for Yellen to show her hand in an address to an … More »

  • British economy escapes Brexit blow, for now
    British economy escapes Brexit blow, for now Reuters - 1 hour 48 minutes ago

    Britain's high streets are heaving with shoppers despite June's shock vote to leave the European Union, big companies have reported few signs of distress and some tabloid newspapers are even talking about a post-Brexit economic boom. The … More »

  • RUBBER-Tokyo futures prices after evening session Aug 26 Reuters - 2 hours 10 minutes ago

    Following are prices for Tokyo rubber futures at the end of the Tokyo market's evening session on Aug 2016. Contract Day Volume Evening Volume * Aug 154.1 13 153.9 3 * Sep 155.6 41 156.5 66 * Oct 151.8 ... … More »

  • TABLE-INDONESIA KPB NUSANTARA PALM OIL PRICES - Aug 26 Reuters - 2 hours 11 minutes ago

    Aug 26 (Reuters) - Following are Indonesian prices for crude palm oil (CPO) quoted at an auction by PT KPB Nusantara (formerly known as the state marketing centre) on Monday. Buyer Volume Price Terms (tonnes) ... … More »

  • Google hires Airbnb exec to commercialize self-driving cars Reuters - 2 hours 19 minutes ago

    Alphabet Inc's Google self-driving car project took a step closer to market with the hire of a top executive from Airbnb, the online vacation home rental marketplace. Shaun Stewart is joining Google as a director of the self-driving car project, … More »

  • Global Economy Weekahead - U.S. jobs data to test case for rate hike
    Global Economy Weekahead - U.S. jobs data to test case for rate hike Reuters - 2 hours 21 minutes ago

    U.S. jobs data top economic readouts from around the world next week as global markets begin to return to business as usual following a typically quiet August with the calm broken on Friday by comments from Federal Reserve Chair Janet Yellen. … More »

  • FTSE gains after Yellen comments, Glencore rallies
    FTSE gains after Yellen comments, Glencore rallies Reuters - 2 hours 21 minutes ago

    Britain's top share index rose on Friday after Federal Reserve Chair Janet Yellen indicated that a U.S. interest rate rise could come later this year, a relief for investors after last week's hawkish comments from some Fed policymakers. The blue … More »

  • Tribe trucks totem pole 4,800 miles in fossil fuels protest
    Tribe trucks totem pole 4,800 miles in fossil fuels protest Associated Press - 2 hours 22 minutes ago

    A Pacific Northwest tribe is traveling nearly 5,000 miles across Canada and the United States with a 22-foot-tall totem pole on a flatbed truck in a symbolic journey meant to galvanize opposition to fossil ... … More »

  • Oil falls as Saudi Arabia douses expectations for output freeze
    Oil falls as Saudi Arabia douses expectations for output freeze Reuters - 2 hours 25 minutes ago

    Oil eased on Friday, on course for its largest weekly decline in a month after the Saudi energy minister watered down expectations that the world's largest producers might agree next month to limit their output. Members of the Organization of the … More »

  • AXA prevails after U.S. trial on excessive fund fees Reuters - 2 hours 26 minutes ago

    U.S. District Judge Peter Sheridan in Trenton, New Jersey, said late Thursday that the investors did not show that AXA breached its fiduciary duties by keeping most fees charged for mutual fund investments and back-office duties, while remitting … More »

  • Markets Right Now: Stocks slip on Wall Street Associated Press - 2 hours 32 minutes ago

    The latest on developments in global financial markets (all times local): 11:55 a.m. Stocks were mostly lower on Wall Street at midday, giving up a modest gain following a generally upbeat assessment of ... … More »

  • Erdogan, Putin agree to step up aid for Syria's Aleppo
    Erdogan, Putin agree to step up aid for Syria's Aleppo AFP News - 2 hours 33 minutes ago

    Turkish President Recep Tayyip Erdogan and Russian counterpart Vladimir Putin on Friday agreed to step up efforts to ensure humanitarian aid reaches citizens in Syria's conflict-torn northern Aleppo province. In telephone talks "the two leaders... … More »

  • German Finance Ministry critical of ECB bond purchases - Spiegel Reuters - 2 hours 37 minutes ago

    The German Finance Ministry is critical of the effects the European Central Bank's asset-purchase programme is having on bond markets, magazine Der Spiegel reported on Friday, citing an internal draft from the ministry. The ECB is buying 80 billion … More »

  • U.S. jobs data to test case for rate hike
    U.S. jobs data to test case for rate hike Reuters - 2 hours 45 minutes ago

    U.S. jobs data top economic readouts from around the world next week as global markets begin to return to business as usual following a typically quiet August with the calm broken on Friday by comments from Federal Reserve Chair Janet Yellen. … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.129+0.001+0.78%
    N21.SI
    1.855-0.040-2.11%
    MC0.SI
    2.84+0.02+0.71%
    C52.SI
    4.22-0.05-1.17%
    Z74.SI
    0.58-0.01-1.69%
    5TP.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.29+0.08+38.10%
    5VI.SI
    0.36+0.07+22.03%
    BPF.SI
    0.192+0.030+18.52%
    AYD.SI
    0.27+0.04+17.39%
    BLU.SI
    0.40+0.05+14.29%
    BFK.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.205-0.055-21.15%
    BTJ.SI
    0.34-0.06-15.00%
    BCD.SI
    0.39-0.06-13.33%
    AYB.SI
    0.31-0.04-11.43%
    5VP.SI
    0.24-0.02-9.43%
    BAZ.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3588+0.0057+0.42%
    USDSGD=X
    1.5220-0.0047-0.31%
    EURSGD=X
    1.78430.000.00%
    GBPSGD=X
    74.9260+0.681+0.92%
    SGDJPY=X
    5.7072-0.021-0.37%
    SGDHKD=X
    2.9614-0.0026-0.09%
    SGDMYR=X
    9,759.4238-59.1611-0.60%
    SGDIDR=X
    4.9105-0.0098-0.20%
    SGDCNY=X
    1.0278-0.0028-0.27%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,324.50-0.10-0.01%
    GCZ16.CMX
    18.59+0.10+0.55%
    SIU16.CMX
    94.83-1.69-1.75%
    ^XAU
    2.080.00+0.02%
    HGU16.CMX
    47.64+0.31+0.65%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.22+0.07
    ^FVX
    1.62+0.04
    ^TNX
    2.29+0.02
    ^TYX