Europe Stocks Slump Most Since U.S. Vote as Trump Trades Unravel

Updated on

Trump Immigration Order Reverberates in European Markets

European equities fell, with the winners in a rally spurred by Donald Trump’s U.S. victory turning losers on Monday, as investors assessed the potential for political fallout from his order halting some immigration.

Miners, energy producers, banks and insurers -- the best performers in the final quarter of 2016 -- led losses in the Stoxx Europe 600 Index. The benchmark slid 1.1 percent, the most since Nov. 2. Greek stocks fell the most among western-European markets on concern over the country’s bailout payment.

“It’s been a disappointing start to the week as we head towards the end of January, as investors digest the latest executive order from U.S. President Donald Trump, which has prompted large scale selloffs across the board for European stocks as concerns rise that the U.S. may become a much less predictable place to do business,” Michael Hewson, an analyst at CMC Markets in London, wrote in a note.

  • Trump’s executive order halting immigration from seven mostly Islamic nations sparked a backlash from world governments to large companies, and raised concern that he may follow through with isolationist policies that could overshadow a pro-growth agenda.
  • Germany’s DAX Index fell the most in three months. Data showing the country’s inflation accelerating at its fastest pace in more than three years weighed on the region’s bond market.
  • Greece’s ASE Index dropped 3.5 percent, capping its biggest two-day slide since the aftermath of the Brexit vote in June, after the government failed to bridge differences with European creditors over the conditions attached to the country’s latest bailout review.
  • Monday’s declines trimmed the Stoxx 600’s third monthly advance to just 0.3 percent.

— With assistance by Elena Popina

    Before it's here, it's on the Bloomberg Terminal.