What does the new administration mean for Wall Street? Jim Cramer's first reaction to the election is live on TheStreet's Facebook page tomorrow morning at 8 a.m. ET. He joins our team of reporters along with experts and analysts tracking the markets.
Which European stocks are likely to rise or fall most depending on the outcome of the U.S. presidential election?
BNP Paribas (BNPQF) , France's largest bank, has come up with a novel way of arriving at an answer, crunching the numbers on stock movements during Hillary Clinton's woes after the FBI's short-lived relaunch of its investigation into her emails.
The resulting figures suggest a Clinton win would be good new for European banks, oil companies and any company with significant U.S. revenue, according to BNP.
Italy's fragile banking sector, which can ill afford a global economic downturn, was among the biggest losers during the nine days of uncertainy created by the FBI probe. Banca Popolare di Milano (BPMLY) , Banco Popolare (BPSAY) , Unicredit (UNCFF) and Mediobanca (MDIBF) all lost more than 9%.
Elsewhere, sports clothes maker Adidas (ADDYY) tumbled 11%, advertising group JCDecaux (JCDXF) was down 10% and telecom holding company Altice (ALLVF) fell 9.6% over the nine day period during the FBI's investigation, while oil was the period's worst-performing sector.
With regards to Trump, BNP backed the wider Wall Street consensus that a Republican would be bad news for the stock market in general -- though it claimed that the result would "perversely" hurt European stocks more than U.S. stocks as reflationary fears hit the global market.
The French bank likened the Republican's victory to past "big risk events," drawing a comparison with the recent British vote to leave the EU, and claiming that history suggested markets would fall by between 5% and 11%.