London — A record-setting rally in world stocks ran out of steam on Thursday, with unconvincing US tax cut plans cooling investors’ spirits and caution setting in as the European Central Bank met. Europe’s main bourses were as much as 0.7% lower as traders pulled back after six days of unbroken gains fuelled by relief at the outcome of the first round of France’s presidential election and encouraging earnings and economic data. Asia felt groggy too. The Bank of Japan offered its most upbeat economic assessment in nine years but Asia-Pacific shares ended flat a day after hitting their highest in almost two years. A surprise move by Sweden to expand its stimulus programme pushed the crown down sharply, and the Canadian dollar and Mexican peso jumped as the U.S. said it would not scrap the North American Free Trade Agreement. But the focus was turning to the ECB and what its head Mario Draghi and his colleagues have made of the recent improvement in eurozone economic data. The bank is ...
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