There is the whiff of a hangover for investors this morning as European shares stumbled after an exuberant rally in the previous session that left the major bourses around 2-3 per cent higher to start the week. We haven’t made it back to the key mid-September levels and bulls may be looking at downside risks in the shape of the slowing economic recovery and pre-election jitters. Nancy Pelosi and Steve Mnuchin may be able to cut one last stimulus deal before the election, but it still looks like the odds of it passing the House and Senate are less than evens. The FTSE 100 and DAX both fell 1 per cent and the failure by bulls to build any momentum from these one-day bounces is a sign of tepid sentiment.
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