Trump policies spark surge in foreign stocks

US President Donald Trump has promised to create an age of American exceptionalism with policies that put the US first, and ahead of other nations.

- JOE RENNISON

But Trump's moves in the early days of his administration have had the opposite outcome for the American stock market.

The S&P 500, which for years had been soaring above the stock indexes of other countries, is now trailing major markets in Europe and China, as investors have started to pull money from the US and reallocate it around the world.

Since Trump's inauguration, the S&P 500 has fallen 6 percent, while the Dax index in Germany has risen 10 percent, and the Europe-wide Stoxx 600 index has gained more than 4 percent. Other US indexes have fared even worse, as European markets have been buoyed by plans for military spending on the continent after Trump made it clear he wants those nations to do more to protect themselves.