European stocks fell to a one-week low Wednesday, with bank shares among the worst performing, as investors questioned whether the new U.S. administration can soon deliver the fiscal and regulatory changes needed to support the "Trump trade."
The Dow fell for a fifth straight session Wednesday as the broader market staged a modest rebound on the back of technology stocks. The selloff came as issues with the Republicans' health-care bill prompted investors to question Trump's ability to follow through on promises of tax reforms and $1 trillion in infrastructure spending, according to Connor Campbell, financial analyst at Spreadex. A vote on the bill has been set for Thursday.
Global markets stabilized after skidding a day earlier, though investors were on edge ahead of a vote on U.S. health care later Thursday that could be a barometer for future Trump administration policies. After U.S. stocks rebounded Wednesday and oil and the dollar seemed to have found near-term support, participants in Asia-Pacific markets were wary.
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