European markets extend the Trump win-led rebound

Risk-off sentiment continues to dominate the market in Europe, adding to yesterday’s solid rebound staged by the region’s equities, in response to a Trump victory at the US presidential elections.

Markets responded positively to the Trump’s presidency news as they now believe that a Trump win means huge fiscal spending on infrastructure and mooted tax cuts, which will help bring the US economic recovery back on track.

Moreover, the resource, energy and healthcare sector stocks rallied the most, amid rebounding metals and oil prices. Meanwhile, analysts at Morgan Stanley noted,
"We expect a relief rally in the healthcare sector, as Hillary Clinton was viewed as a bigger risk to the drug industry than Donald Trump due to a long history of focus on drug pricing."

Germany's DAX 30 index now rallies +1.07% to 10,760 levels, while the UK's FTSE 100 index rises +0.91% to 6,977. Among the other indices, the French CAC 40 index advances +1.13% to 4,595, while the pan-European Euro Stoxx 50 index jumps +1.32% to test 3100 mark.