Shares fall, dollar dips versus yen after
Trump travels curbs
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[January 30, 2017]
By Nigel Stephenson
LONDON (Reuters) - Shares fell in Europe
and Asia on Monday and the dollar dipped against the yen after
immigration curbs introduced by Donald Trump added an extra layer of
uncertainty to the economic impact of the new U.S. president's policies.
Wall Street appeared headed for a weaker opening, with e-mini futures
contracts on the S&P 500 stocks index down 0.2 percent.
Signs of accelerating inflation in Germany pushed yields on euro zone
government bonds higher. French 10-year yields hit a 16-month high in
early trade after an opinion poll showed conservative presidential
election candidate Francois Fillon, the favorite to win the vote, losing
ground.
Trump suspended travel to the United States from Syria, Iraq, Iran and
four other countries on national security grounds. The executive order,
signed on Friday, triggered huge protests in U.S. cities and raised
concern among some in markets over the potential impact of other policy
moves.
"Concerns on protectionism appear to be rising after President Trump's
executive order to restrict immigration," said Adam Cole, head of G10
foreign exchange strategy with RBC in London.

The pan-European STOXX 600 index dropped 0.8 percent, led by a 1.6
percent fall in resources-related stocks as commodity prices fell.
Trade in Asian share markets was thinned by the Lunar New Year. MSCI's
broadest index of Asia-Pacific shares outside Japan lost 0.5 percent.
Australian shares closed down 0.9 percent.
Japan's Nikkei fell 0.5 percent as demand for the safe-haven yen weighed
on exporters.
"Trump always stated these were policies he would implement," said James
Woods, global investment analyst at Rivkin Securities in Sydney. "This
renews concerns about a trade war with China that would significantly
affect both the Asian and the global economy."
The dollar gained marginally against a basket of currencies. The index
was at 100.58, having fallen as low as 100.17 in Asian trade.
The euro was flat at about $1.0690 and the yen was up 0.3 percent at
114.77 per dollar.
In debt markets, German 10-year yields turned higher and were up 2.6
basis points at 0.49 percent after regional data lifted expectations of
a pick-up in inflation in Germany as a whole.
Consumer prices rose 2.3 percent year-in-year in Saxony this month.
National data due at 1300 GMT is expected to show German inflation rose
to hit the ECB's 2 percent target.
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Visitors use their mobile phones before a ceremony marking the end
of trading in 2016 at the Tokyo Stock Exchange (TSE) in Tokyo, Japan
December 30, 2016. REUTERS/Toru Hanai

The premium investors demand to hold French 10-year bonds rather
than German hit its widest in three years after a poll on Sunday
showed Fillon, embroiled in a scandal over allegations of misuse of
public funds, losing ground to centrist candidate Emmanuel Macron.
Both candidates are ultimately expected to beat far-right candidate
Marine Le Pen if either faced her in a run-off.
RAND FALLS
A big mover among emerging markets currencies was the South African
rand, which fell 0.8 percent to 13.59 per dollar after reports that
President Jacob Zuma was considering a cabinet reshuffle in response
to calls for his resignation in November. The rand earlier traded
down 1.34 percent.
Oil prices fell 0.7 percent, weighed down by the reduced appetite
for risk resulting from the immigration curbs and by signs of rising
U.S. oil output. Data from Baker Hughes showed U.S. drillers added
15 oil rigs last week, taking the total to its highest since
November 2015.
Brent crude, the international benchmark, fell 41 cents to $55.11 a
barrel.

Copper fell 0.1 percent to $5,893 a tonne, with trade also thinned
by the week-long new year holiday in China.
(Additional reporting by Nichola Saminather in Singapore and Patrick
Graham and Dhara Ranasinghe in London; editing by John Stonestreet)
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