Market Buzz: World markets slump as post-election glow fades

Market Buzz: World markets slump as post-election glow fades
Russian stocks are likely to open flat amid uncertainty on global floors while investors await a critical decision by the Greek parliament on a new package of spending cuts.

­Russian markets declined on Wednesday after the brief relief of a verdict being rendered in the US presidential election, while concerns over the deepening eurozone crisis also dented investor sentiment. The MICEX and the RTS both shed 1.5%.

European equities headed south Wednesday amid worries over the weak performance of German industry and fiscal issues in the US. The Stoxx Europe 600 tumbled 1.4%. Germany’s DAX 30 shed 2% after European Central Bank chief Mario Draghi said the debt crisis was beginning to have an impact on the German economy – data showed that German industrial production fell 1.8% in September. The French CAC 40 dropped 2% triggered by oil major Total SA.

US markets plummeted Wednesday, with concerns over the looming ‘fiscal cliff’ and Europe’s troubles overshadowing an initial rally following the presidential election. The Dow Jones shed 2.4% – its worst downturn of the year – triggered by losses at Bank of America and J.P. Morgan. The Nasdaq lost 2.5% and the S&P 500 fell 2.4%.

Asian stocks fell on Thursday amid renewed concerns about upcoming fiscal challenges for the US after the presidential election and its potential effects on Asian economies. Japan’s Nikkei fell 1.7% and Australia’s S&P/ASX 200 shed 0.8%, while South Korea’s Kospi dropped 1.3% after a late open. In China, Hong Kong’s Hang Seng fell 1.4% and the Shanghai Composite lost 1% at the start of a weeklong conference to announce the country’s next leaders.