Trump victory could lead to European market rout, warns ECB

Ahead of Italian referendum

Daniel Flynn
clock • 1 min read

The European Central Bank (ECB) has warned Donald Trump's victory in the US Presidential Election earlier this month could hit European markets.

According to the Financial Times, political instability in the US could negatively affect investor sentiment around the world, with the possibility of a further surge in borrowing costs for eurozone governments. The ECB said while the implications of Trump's election for the euro area remain "highly uncertain", the "risk of further asset price corrections" remains significant in bond markets. According to the paper, Vítor Constâncio, vice-president at the ECB, said: "The world has changed a little bit. The risk of political uncertainty has risen." A report from the bank added that ...

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