A sell-off in the shares of some European carmakers and renewable energy firms entered a second day on Tuesday on growing concerns over potential U.S. policy risks after an assassination attempt boosted Donald Trump’s chances in the presidential race.
Vance’s tough talk on China and opposition to more aid for Ukraine have reinforced the view that trade barriers would rise, should he and Trump win, and Europe’s export-oriented economy looks vulnerable. Among European automakers, which are heavily reliant on exports for growth, Porsche AG was the biggest loser on Tuesday, down as much as 5.7% in Frankfurt.
“Given Trump’s platform is to put America first, it’s hard to imagine that a Trump presidency is really good for asset markets outside the US,” said Michael Metcalfe head of macro strategy at State Street. Some European clean energy stocks were also under pressure, adding to Monday’s declines on concerns Trump would reduce support for renewables in favor of fossil fuels.