European stocks fall, Bunds in demand, as ‘Trump trade’ wobbles

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European stocks followed US and Asian markets lower at the start of trading on Wednesday, in a further sign of growing investor scepticism about the post-US election Trump rally.

At the open:

  • FTSE 100: -0.7 per cent
  • Dax: -0.8 per cent
  • Cac 40: -0.66 per cent
  • Euro Stoxx Banks Index: -1.2 per cent

Sovereign bond yields are also falling across the continent, as investors turn to haven assets. Yields on Germany’s benchmark 10-year Bunds, which fall when prices rise, were down 2.8 basis points (0.028 percentage points) at publication time, to 0.427 per cent.

US markets suffered their worst falls since the November election yesterday, with stocks across Asia also tumbling overnight.

Signs that the Trump administration is struggling in its efforts to enact healthcare reform, the first major initiative of the presidency, have dented confidence in the president’s ability to follow through with other pro-business campaign promises.

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