European equities dropped while German government bonds hovered around their weakest levels since mid-July as expectations rose for central banks to wind back their crisis-fighting monetary stimulus programmes.
The regional Stoxx Europe 600 share index fell 1.1 per cent in early dealings, having lost 0.5 per cent in the previous session. London’s FTSE 100 lost 0.8 per cent.
The European Central Bank meets on Thursday and investors expect it to announce a slowdown in the pace of its bond purchases after improvements in the economic outlook.
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