At their opening on Wednesday 04.11.2020, European markets went down after receiving the news that Donald Trump prematurely declared victory over his Democratic rival Joe Biden at the time when millions of votes are still not counted, and the nation must remain patient for the next several hours or even days before the entire process is completed. Donald Trump, who was speaking in the White House, declared victory, adding that he will go to the Supreme Court if he loses. "We were getting ready to win this election," said the President. "Frankly, we did win this election; this is a major fraud on our nation. We want the law to be used correctly. So we'll be going to the U.S. Supreme Court. We want all voting to stop."
Trump's speech came after Joe Biden's who came on stage and said he is confident his campaign is on the path to winning the race and urged his voters to remain patient until the very last vote is counted.
Polls are indeed closed, and voting has been stopped across the country. At this point, vote counting is on-going. For many states, this process may take days to count all ballots. This time around, Americans voted early by mail and in-person because of the coronavirus pandemic; that's the reason why more votes stood to be counted this year than in the past.
Trump's claim without evidence injected more uncertainty into the markets. The markets hate uncertainty, so analysts predict more volatility until the results are cleared.
"Futures did not like that: Donald Trump just declared war by declaring victory in the election before all the counting is over, he's played the voter fraud card, and this has undoubtedly unsettled markets," said Neil Wilson, chief analyst at Markets.com. "As a long and protracted battle in the courts is precisely what investors do not want. FTSE futures, E-minis, gold, oil — everything went south on the comments from the president, except the dollar."