And so it begins

In the European stock markets, pharmaceutical companies took a beating and led the decline on the news of Barack Obama's election.

EUROPEAN shares extended early losses on Wednesday, falling as much as 3 per cent, with pharmaceuticals and banks leading the decline.

At 1025 GMT the pan-European FTSEurofirst 300 index was 2.6 per cent lower 948.97 points after hitting a day's low of 944.97.

The index broke six straight days of gains as investors' focus returned to the economy after Barack Obama's election as US president.

Worries about pressure on US drug prices under a Democrat administration saw European drug stocks lead the losers after Barack Obama's decisive win in the presidential election.

Look for more of this as Obama's policies become more clear and other industries are threatened.