Trump pledged during his election campaign to cancel offshore wind energy projects by executive order on his first day in office. Trump returned The White House After obtaining more than the quorum required to win, which is 270 electoral college votes.
Shares of Ørsted and Vestas fell 12.8 percent, and the broader public utilities sector fell 2.6 percent.
The European STOXX 600 index fell 0.5 percent, with all stock markets closing lower, and the Spanish IBEX index recorded the largest losses, falling 2.9 percent.
“We see less upside potential in European stocks under a Trump presidency,” equity analysts at UBS said in a note.
“In European stocks, we expect the market to focus on three key policy areas for the new president-elect: potential trade tariffs, potential rollback of some green energy initiatives, and implications regarding Russia, Ukraine and European defense spending,” the note said.
German automakers like a group lost Mercedes Benz And BMW rose about 6.5 percent due to fears of possible tariffs on imports under Trump’s presidency. But BMW later downplayed these concerns.
The broader auto sector fell 2.3 percent.
Trump also pledged to impose 10 percent tariffs on imports from all countries if he wins, and said the European Union would have to “pay a heavy price” for not buying enough American exports.
Most companies included in the STOXX 600 index generate only about 40 percent of their revenues locally, while a large portion of it comes from the United States.
Trading activity related to Trump’s policies, which may benefit from his presidency or be exposed to pressure because of them, was affected on Wednesday, with the main indices on Wall Street rising to record high levels amid expectations of reducing corporate taxes.
Trump is considered a catalyst for European defense sector stocks due to his warnings against reducing US military support in the region and his pressure on NATO members to spend two percent or more of their gross domestic product on defense.
The European aerospace and defense index jumped 2.1 percent to a record level.
Among the earnings-driven moves, Novo Nordisk shares rose 0.6 percent after the weight-loss and diabetes drug company reported better-than-expected quarterly sales for the popular weight-loss drug Wijovi, and cut its 2024 forecast.
Investors’ focus now turns to the interest rate decisions that will be made by the US Reserve and the Bank of England later in the week.
