European stocks hit a three-week low as Trump protectionist reality sets in
London — European stocks and bond yields dropped on Monday and the dollar hit a six-week low after US President Donald Trump began his term in office with a protectionist speech that pushed a nervous market into safe-haven assets. World stocks hit multiyear highs earlier this month on expectations that Trump would boost growth and inflation with extraordinary fiscal spending measures. However, his inaugural address on Friday saw investors retreat to the safety of higher-rated government bonds as the new president signalled an isolationist stance on trade and other issues. He also made it clear that he plans to hold talks with the leaders of Canada and Mexico to begin renegotiating the North American Free Trade Agreement. European stocks fell 0.7% and the broader Euro STOXX 600 fell 0.6% in early trades on Monday, both hitting their lowest level this year so far. Japan’s Nikkei .N225 dropped 1.1% while shares in Australia dropped 0.8% after Trump’s administration declared its intenti...
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