Shares in German carmakers got off to a rough start Wednesday as investors reacted to Donald Trump's surprise election victory.
The key driver for the move lower is currency headwinds, according to Evercore ISI analyst Arndt Ellinghorst, who says German manufacturers have a combined $30 billion net exposure. The greenback fell against other major currencies as momentum moved in Trump's favour overnight, and traded around 0.8 percent lower against the euro early in the European session.
Shares in Germany's top carmakers, meanwhile, underperformed with losses of over 3 percent while the pan-European Stoxx Autos index dipped 2.5 percent one hour into the trading day. Ellinghorst points out that the US is Germany's largest trading partner with the country's car makers exporting about 620,000 cars to the country last year alone.