Shares fall as traders focus on US woes

World shares and the euro fell yesterday as traders turned their focus to the festering fiscal problems in the US and Europe after the re-election of President Barack Obama signalled no dramatic shift in US economic policies.

Jittery investors scrambled for less-risky assets, with benchmark US Treasuries poised for their best one-day move since May.

Concerns persisted whether Obama could reach a timely deal with Republican lawmakers to avert the “fiscal cliff” — the $600bn in automatic tax hikes and spending cuts set to kick in on Jan 1. Economists warned such a move would tip the world’s biggest economy into a recession.