May 22, 2013
Global stocks plunge on fiscal woes after US vote
The Dow industrials lost more then 300 points in a sell-off today that drove all major US stock indexes down over 2 percent in the wake of the presidential election as investors' focus shifted to the looming "fiscal cliff" debate and Europe's economic troubles.
The Dow Jones industrial average slid 312.95 points, or 2.36 percent, to close at 12,932.73. The Standard & Poor's 500 Index fell 33.86 points, or 2.37 percent, to 1,394.53. The Nasdaq Composite Index lost 74.64 points, or 2.48 percent, to close at 2,937.29.
European stocks fell sharply after bleak forecasts for the euro zone economy and fiscal problems in the United States eclipsed initial relief over US President Barack Obama's re-election.
In morning trade the FTSEurofirst 300 had hit a level not seen for nearly two months as the Obama win fuelled hopes the US Federal Reserve would maintain its loose monetary policy.
The FTSEurofirst 300 closed down 1.4 percent at 1,099.35, while on Wall Street all three major indexes were off more than 2 percent.Earlier, Japan's Nikkei recouped early losses, with Nissan Motor Co and Sumitomo Metal Mining rallying after they cut their earnings forecast less than feared and as the market priced in the re-election of US President Barack Obama.
The Nikkei ended down 2.26 points, or 0.03 percent, to 8,972.89 after falling as much as 0.6 percent at the start of the afternoon session as the expectations of an Obama victory gathered momentum.