Obama Win Gets Mixed Reviews from World Markets
- Nov 05, 2008
Stocks gained before the election, but the market advances following the presidential victory of Sen. Barack Obama may be short-lived, according to the Wall Street Journal.European stocks snapped their winning streak Wednesday morning as investors judged recent market gains as overdone. The Dow Jones Stoxx 600 Index was 2.9 percent lower at 226.79. In terms of national markets, the U.K.’s FTSE 100 Index lost 2.6 percent to 4517.15, while France’s CAC-40 Index shed 2.9 percent to 3581.90. Germany’s DAX Index declined 2 percent to 5173.30. Asian markets racked up sizable gains on news of the results, with Japan’s Nikkei 225 adding 4.5 percent, while Australia’s S&P/ASX 200 roared 2.9 percent higher, according to the WSJ report.Investors are now pinning their hopes on aggressive interest-rate cuts by the Bank of England and European Central Bank Thursday to help propel equity markets higher. Despite the flux in the stock market, Bloomberg.com reported that the dollar gained against the euro and rose against the pound and the Australian dollar.Another hit to the suffering housing economy came to fruition with the warning from Texas-based homebuilder D.R. Horton Inc.- one of the nation’s largest home builders – that it expected to lose as much as $900 million in its fiscal fourth quarter, according to the The Los Angeles Times. D.R. Horton. In the year-ago period, D.R. Horton lost $50.1 million and the company has projected that revenue for the quarter would fall by half to $1.5 billion.