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 0.7% fall, 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.