Obama victory met with job losses, mkt mayhem

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New York, November 6: : Vanishing jobs and slumping markets confronted Barack Obama on the first day after his historic election as US president, escalating pressure for urgent action to curb the world's relentless financial crisis.

A day after being elected America's first black president, Obama heard a chorus of congratulations from around the world but also warnings about the creeping global recession that will crowd the top of his agenda along with the wars in Iraq and Afghanistan.

Investors and world leaders expressed hope Obama could guide the international community while investors eagerly awaited an announcement on who would be selected as Treasury Secretary to oversee the $700 billion program to buy distressed assets and recapitalize wobbly financial institutions.

"Even though there's a lot of enthusiasm and a lot of excitement around the new president, I think it's going to be very difficult for anything quick to happen," said Dean Barber, president of Barber Financial Group in Kansas City.

"Today we just had reality set in that ... we're still losing jobs and we still have consumer spending at very low levels and we are heading into a holiday season that looks like it could be one of the worst," he said.

The market euphoria of Election Day dissipated with all the major U.S. stock indexes plummeting more than 5 per cent, the largest decline on record for a day following a U.S. presidential contest.

European stocks earlier lost 2.2 per cent on a day in which Germany approved a 50 billion euro ($64.22 billion) stimulus package, Italy pledged to support its banks and service sector activity in the euro zone hit a decade low.

Other European banks reported weak earnings and gloomy data from Britain and the 15-nation euro zone added to expectations of hefty interest rate cuts on Thursday.

"We need a new deal for a new world," said European Commission President Jose Manuel Barroso. "I sincerely hope that with the leadership of President Obama, the United States of America will join forces with Europe to drive this new deal."

Oil sank nearly 8 per cent to around $65 a barrel and the VIX, a volatility index seen as a measure of investor fear, soared 14 per cent.

JOBS LOST, SERVICE SECTOR SHRINKS