Global markets sold off aggressively overnight, one day after the re-election of President Obama. Investor reaction was decidedly negative over the defeat of the more business-friendly Mitt Romney and the continued gridlock in Congress that makes it tough for lawmakers to avert a fiscal policy crisis by year-end.

European markets finished firmly in the red after the European Commission lowered growth forecasts for the eurozone. Britain's FTSE lost 93 points (-1.6%) to settle at 5792 while the DAX fell 145 points (-2%) to settle at 7233 after ECB President, Mario Draghi, said that the Greek debt crisis is starting to take its toll on Germany's economy.

In the US, the Dow Jones shed 313 points (-2.4%) to settle at 12933 while the S&P lost 34 points (-2.4%) to settle at 1395 and the Nasdaq declined 75 points (-2.5%) to settle at 2937.

In the commodity space, oil suffered its biggest single-session decline this year, after President Barack Obama won re-election and Greece prepared to vote on austerity measures.

Crude oil for December delivery fell $4.27 to settle at $84.44 a barrel on the NYMEX. It was the biggest decline since 14 December. Prices have decreased 15% this year.

Gold declined for the first time in three sessions as a stronger US dollar hurt demand for the precious metal as an alternative investment.

Gold futures for December delivery slid 0.1% to settle at $1,714 an ounce. In the currency space, the yen strengthened against the US dollar as investors sought a safe-haven due to the uncertainty surrounding the approaching fiscal cliff.

The euro fell to its weakest in two months versus the dollar after European Central Bank President Mario Draghi said the region's crisis is affecting Germany. Today the market will be in receipt of the latest unemployment numbers, at 11:30am, AEDT.

Morning Market Update: Wipe Out is a post from: Australian Stock Report Market Pulse Blog