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European stock markets opened sharply lower on Wednesday as the continent woke up to news that Donald Trump had won the U.S. presidential election, but things turned around later in the day. The early moves followed a drop in Asian markets.
Global stock markets were thrown into disarray as traders were surprised by the victory after final polls had pointed to a Hillary Clinton victory.
Media and entertainment stocks also traded lower in early market activity. German TV giant ProSieben saw its stock fall 3 percent, while Italian TV company Mediaset was down 6 percent shortly after 8:15 a.m. London. The shares of U.K. TV giant ITV were down 1.6 percent, while pan-European pay TV giant Sky’s stock fell 0.8 percent.
French media and telecom company Vivendi was doing relatively better, with a 1.1 percent drop.
The pan-European Stoxx Europe 600 index was down 1.9 percent in early trading, Britain’s FTSE 100 dropped 1.3 percent and the German DAX fell 2.2 percent.
In Asia, Japan’s Nikkei had dropped 5.4 percent on Thursday as Trump gained momentum throughout Election Night. Sony’s stock in Tokyo lost 5.1 percent of its value.
In currency trading, the value of the dollar fell compared to the euro and the pound in the early European morning.
“The shock and uncertainty caused by the Trump victory have already been reflected in foreign-exchange markets,” wrote Jefferies media and advertising analyst Tamsin Garrity. “But ramifications for advertising are likely to be a mix effect of uncertainty near-term (the enemy of growth and advertising) and corporate-friendly policies leading to positives mid-term.”
But European markets improved as the day continued, and the Stoxx Europe 600 closed up 1.5 percent, with some sector stocks also finishing higher. ITV’s stock wrapped the day 0.1 percent higher, Vivendi was up 0.4 percent, while Sky and ProSieben closed down 0.7 percent each and Mediaset down 3.8 percent.
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