European Renewable Stocks Take Hit After Trump Wins U.S. Election

Source: By Christoph Steitz and Nikolaj Skydsgaard, Reuters • Posted: Wednesday, November 9, 2016

FRANKFURT/COPENHAGEN — European renewable stocks fell sharply on Wednesday after Donald Trump won the U.S. presidential election, hit by fears over his aim to promote oil and gas drilling and revive the U.S. coal mining industry.

Shares in Vestas, the world’s biggest wind turbine maker, plunged 10 percent in early trade in Europe, while German peer Nordex traded 6 percent lower.

Spain’s Gamesa, which is being merged with Siemens, and Portugal’s EDP Renovaveis traded 3.4 and 5.3 percent lower, respectively.

The S&P Global Clean Energy Index fell 2.6 percent to its lowest level since late June.

“Mr. Trump has in the past displayed negative attitudes towards wind, calling wind turbines ‘environmental disasters’,” analysts at Barclays wrote.

“All this appears to run counter wind and will shift investors’ near-term attitudes towards the stocks, in our view.”

Trump’s energy plan would also force the United States to make a turnabout on the environment as he wants to withdraw from the global climate change pact agreed in Paris last year.

(Reporting by Christoph Steitz and Nikolaj Skydsgaard; Editing by Maria Sheahan)