Widespread protests against President Donald Trump's stringent curbs on travel to the United States have hit world stock and the dollars. As David Pollard reports, there are also fears his policies could disrupt the economic recovery Europe.
Blink and blink again but it is true. After a new year with new highs, European share markets are now staring at some their biggest losses in weeks. The slide paused on Tuesday - but amid a sense Monday's sharp drop wasn't the worst of it. (SOUNDBITE) (German) TRADER, ICF BANK, ATAKAN SAHIN, SAYING: "It is the beginning of something and the markets haven't really been able to work out where it's all going. That is where the nerves come from." For the dollar, it's the worst start to a year since the financial crisis. Heading towards a 1.9 per cent drop this month as it too struggles with the reality of Donald Trump. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "We're seeing a much bigger focus from Trump on these protectionist policies. The immigration situation over the weekend is not helping sentiment, either. So it just show that it is going to be a rocky road ahead." Europe's road is getting smoother. Germany's labour office announcing a new record low for unemployment. Eurostat confirmed steady euro zone growth. And inflation: at 1.8 per cent it's edging closer to the ECB's target rate. If the surge in fuel prices and the low euro exchange rate pushing its rise aren't entirely welcome. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "Neither of these is sustainable in the longer-term and are going to lead to sustainable longer-term inflation and improved economic circumstances. If the ECB uses these as a reason to taper its asset programme further, then I think this could be quite damaging for the euro area." The Fed also felt as another cause for jitters .... No hikes expected at this week's meeting - but the rates' outlook now seen as less certain, as the Trump effect raises new questions over that too.