European stocks drop as U.S. election race tightens

European stocks slid on Wednesday as U.S. President Donald Trump took the lead over Democratic rival Joe Biden in a number of vital swing states, making the race for the White House too close to call. The pan-European STOXX 600 index fell 1.2% by 0805 GMT, while the German DAX shed 1.8% and UK's FTSE lost 1.2%. Trade-exposed auto stocks also fell 2.7%.

European stocks slid on Wednesday as U.S. President Donald Trump took the lead over Democratic rival Joe Biden in a number of vital swing states, making the race for the White House too close to call.

The pan-European STOXX 600 index fell 1.2% by 0805 GMT, while the German DAX shed 1.8% and UK's FTSE lost 1.2%. New York's S&P 500 futures slid 0.6% after volatile trading overnight, while those in the tech-heavy Nasdaq gained 1.0%.

Adding to uncertainty, Trump falsely claimed that he had won the U.S. election, and said that "they" were trying to steal the election, without providing evidence. He said he would go the U.S. Supreme Court to fight for the win if needed. Earlier this week, money managers had bet on a clear victory for Biden in the election, boosting European equities, as investors anticipated better trade ties with Washington and more economic stimulus for the coronavirus-hit U.S. economy.

Banks, oil & gas and mining stocks fell more than 3% after leading a surge in markets this week as investors unwound bets of a Biden sweep that could support the growth-sensitive sectors. Trade-exposed auto stocks also fell 2.7%.