Election Is No Reason to Buy Stocks: Analysts

Barack Obama's victory in the U.S. presidential election is not a good enough reason for stocks to rally, as it does not change the fundamental problems of the world economy, analysts told CNBC Wednesday.

Asian stocks closed mostly higher, with the Nikkei rallying 4.4 percent, but U.S. stock index futures were pointing to a lower open for Wall Street and European stocks were down.

"This is another, if I may use my term, 'fally', which is a rally based on fallacy … the rally of a new presidential election. Nothing is changed. The US economy is deteriorating day by day. There's no reason to rally right now," Kirby Daley, senior strategist at Newedge Group, told "Worldwide Exchange."

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Obama still has to deal with a credit crunch which has not eased enough for banks to provide support to the real economy, despite three-month dollar Libor rates falling to a five-month low on Tuesday, Bob McKee, chief economist, Independent Strategy, said.

"We're getting contraction, we're getting deleveraging, and that's going to continue," McKee said. " We're going to have a really bad position for jobs, for the housing sector."

Both the new president and the new vice-president are urban people, and "that's where things are going to be sorted out", as they are much more in touch with urban issues, he added.

But Obama has been "ambiguous" on the question of free trade, and protectionist measures in the U.S. could be damaging for world growth, McKee said.

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