The dollar and
share prices tumbled on Monday, as investors worried that U.S. President
Donald Trump's defeat over healthcare reform foreshadowed difficulties
delivering other key campaign promises, in particular tax cuts and
spending.
Trump's
failure to rally enough support from his own Republican party to repeal
and replace Obamacare spurred a rush to safe haven assets such as gold
XAU=, the Japanese yen JPY= and the Swiss franc CHF=.
So-called "Trumpflation trades" - bets that Trump's pro-business policies would stoke growth and inflation in the U.S. and global economies, boosting assets such as commodities - came under heavy selling pressure.
The dollar, whose index had surged more than 6 percent in the aftermath of Trump's election to hit 14-year highs at the start of 2017, slipped to its lowest since Nov. 11, two days after the results of the presidential vote .DXY.
U.S. Treasury yields US10YT=RR fell to a one-month low of 2.35 percent, while borrowing costs across the euro zone also fell sharply, as investors ditched riskier assets and unwound bets on higher inflation and interest rates. [GVD/EUR]
The fall in risk appetite dominated European stockmarkets, with the pan-European STOXX 600 index falling 0.8 percent on the day. [.EU]
The Basic Resources index .SXPP was the biggest sectoral loser, down 2 percent to a two-week low as copper prices slipped, while the banking index .SX7P was down 1.3 percent.
And the depressed mood looked set to continue on Wall Street, with U.S. stock index futures ESc1 falling 1 percent to a six-week low.
So-called "Trumpflation trades" - bets that Trump's pro-business policies would stoke growth and inflation in the U.S. and global economies, boosting assets such as commodities - came under heavy selling pressure.
The dollar, whose index had surged more than 6 percent in the aftermath of Trump's election to hit 14-year highs at the start of 2017, slipped to its lowest since Nov. 11, two days after the results of the presidential vote .DXY.
U.S. Treasury yields US10YT=RR fell to a one-month low of 2.35 percent, while borrowing costs across the euro zone also fell sharply, as investors ditched riskier assets and unwound bets on higher inflation and interest rates. [GVD/EUR]
The fall in risk appetite dominated European stockmarkets, with the pan-European STOXX 600 index falling 0.8 percent on the day. [.EU]
The Basic Resources index .SXPP was the biggest sectoral loser, down 2 percent to a two-week low as copper prices slipped, while the banking index .SX7P was down 1.3 percent.
And the depressed mood looked set to continue on Wall Street, with U.S. stock index futures ESc1 falling 1 percent to a six-week low.
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