PARIS Nov 7 European stocks rallied early on
Wednesday as the re-election of U.S. President Barack Obama
fuelled expectation the Federal Reserve's quantitative easing
Despite Obama's victory, the balance of power in the U.S.
Congress stayed mostly unchanged, keeping intact the risk of a
standoff in the "fiscal cliff" talks about $600 billion in
spending cuts and tax increases, which are set to be
automatically triggered at the end of the year unless a deal is
At 0809 GMT, the FTSEurofirst 300 index of top
European shares was up 0.5 percent at 1,119.92 points, a level
not seen in two weeks.
"It certainly brings visibility on U.S. policy, which is
positive for markets. Now the focus moves on (to) the fiscal
cliff," a Paris-based equity and exchange-traded fund trader
"With no big shift of power in Congress, will Obama manage
to get a deal on the fiscal cliff? That's the question."