The market’s embrace of Donald Trump and his “Make America Great Again” chants is showing signs of wear.

European stocks have outperformed their US rivals in the days since Dutch voters rejected a populist candidate and the Federal Reserve increased interest rates last week, alongside a steady drop in the dollar. While the benchmark FTSEurofirst 300 has gained just 0.2 per cent since the close of trading on March 15, the S&P 500 has fallen 1.7 per cent.

And in dollar terms, the FTSEurofirst has enjoyed a 1.9 per cent gain over those four trading days as the greenback has weakened. Since the election, the two indices are now on level footing when compared in dollars, with the S&P 500 up 9.6 per cent and, the FTSEurofirst 300 gaining 9.8 per cent.

The rally in US stocks faced fresh resistance on Tuesday as political wrangling in Washington raised the prospect that it could be more difficult for Mr Trump to push his agenda through Congress.

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