At the start of the day’s trading, European markets recorded their biggest falls since the U.K.’s vote to leave the European Union. London’s FTSE 100 index slipped 2%, Paris was down 2.9%, and Germany’s Dax fell 2%. There were similar drops in Madrid and Milan. This echoed the mood in Asia, where markets also had sank, with Japan’s Nikkei 5% lower and Hong Kong’s Hang Seng down by 2%.
After Trump’s speech, which was considered more “presidential” than expected, markets rallied. London is now showing a 0.39% gain on the previous day, for example. However, markets remain volatile as investors get to grips with the impact on global trade of Trump’s surprising win.
“The reactions are not as bad as I would’ve expected but it is still early days,” said Martin van Vliet, an interest-rate strategist at ING Groep NV in Amsterdam told Bloomberg. “It’s certainly not as dreadful as many people had expected a few hours ago. Everyone is now wondering about the longer-term ramifications.”
After an initial plunge, European media stocks were trading only slightly down on the previous day’s prices at the mid-morning mark. European pay-TV network Sky was 0.62% down, U.K. free-TV company ITV was 0.24% off, and German broadcaster ProSiebenSat.1 was registering a 1.75% fall.