Analysts predict ‘weak’ day for European providers

Annuity-Arrow-700x450.jpgAnalysts at investment firm Keefe, Bruyette & Woods are predicting European insurers will have a weak day following the result of the US Presidential Election.

After Republican candidate Donald Trump was confirmed as winning the election today, Prudential, Zurich and Aegon have been named among insurers that are expected to be impacted by movements in the US dollar.

KBW analysts say: “As with the Brexit vote earlier this year, we expect today to be a weak one for European insurers in general, having been risk on/risk-off trades over the past few weeks into the US election.”

An Aegon spokesman says there will be no impact on the company’s UK business from the election result.

At the time of publication Prudential and Zurich had not responded to requests for comment.

Since the election result was revealed, the FTSE gained ground on sharp losses it suffered this morning. The large-cap index initially dropped 2.1 per cent, but was 0.5 per cent down later in the morning.

The triumph of the unpredictable Republican nominee sent shock waves through Asian markets, which were open as results came through.

The Japanese Nikkei lost 5 per cent, while the Yen rallied against the dollar 3 per cent.

The Mexican peso, on the other hand, reached its lowest point ever against the dollar, falling 13 per cent.