Thursday, 8 November 2012

Obama wins, markets lose

US President Barack Obama won a second term on Tuesday but there was little celebration in markets. The S&P 500 fell 2.4 percent on Wednesday to 1,394.53, its lowest level since August. US yen-year yields fell 12 basis points to 1.64 percent.

The STOXX Europe 600 fell 1.4 percent on Wednesday, not helped by the European Commission cutting its growth forecast for the region to just 0.1 percent in 2013 from 1.0 percent.

Eurozone economic data on Wednesday were also negative.

Sales in the area fell 0.2 percent in September, reversing the 0.2 percent gain the previous month. Spanish retail sales plummeted 7.3 percent but sales in Germany and France rose 1.5 percent and 0.8 percent respectively.

Germany's industrial production fell 1.8 percent in September though. It was the sharpest drop since April.

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