Global Stock Markets Sustain 0.6% Plunge over Trump’s Travel Ban

Investors’ hopes for a fiscal boost to the world’s largest economy under U.S  President Donald Trump have been tempered by controversial and protectionist policies that have seen him suspend travel to the United States from seven Muslim-majority countries.

Thousands took to the streets of major U.S. cities to oppose the travel ban, which also halts refugee arrivals, while marches in Britain added to pressure on Prime Minister Theresa May to cancel a planned state visit by Trump. A stream of U.S. policymakers and business executives have also slammed Trump’s stance.

MSCI’s gauge of the world’s top 46 stock markets .MIWD00000PUS failed to recover any ground on Tuesday, after a 0.6 percent slide on Monday which was its largest loss in a month and a half.

Futures showed Wall Street opening around 0.2 percent lower ESc1, with the S&P 500 index set to add to its biggest daily fall in a month, seen on Monday.

Benchmark German government bond yields edged higher as the euro zone posted better-than-expected inflation and growth data, a trend that plays into the hands of a minority of policymakers calling for an end to the European Central Bank’s ultra-easy stance.

European bourses clawed back some ground after big losses on Monday, buoyed by strong results from the likes of British online supermarket Ocado (OCDO.L).

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.6 percent while Japan’s Nikkei .N225 dropped 1.7 percent, its biggest fall in almost three months.

Supported by signs of accelerating momentum in the global economy, most stock markets remained up on the month as a whole, Reuters reports.

MSCI’s ex-Japan Asian shares index was up 5.8 percent this month while its index of world markets was up 2.7 percent.



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