European stocks and bonds fall in a volatile market, hit by growing concerns that global central banks' commitment to the post-crisis orthodoxy of super-low interest rates and asset purchase programmes may be waning. As Ivor Bennett reports, European stock indexes were heading for their biggest losses since June.
Outside the German stock exchange - the obligatory pose for market debuts. This time energy firm Uniper. Inside though, the metaphor may come unstuck. Any bulls that are left are starting to see red. (SOUNDBITE) (English): DARREN SINDEN, INDEPENDENT MARKET ANALYST, SAYING: "There are some concerns about US interest rates and what the Fed may do when it meets on the 21st of September and I think, to myself, it's just a market running out of steam and some money being taken off what had become quite crowded trades." Falls as much as 2 percent in early deals put European stocks on course for their biggest losses since June. While bond yields around the world go in the other direction. But futures suggest only a one in four chance of a Fed rate hike next week. So is the fear misplaced? (SOUNDBITE) (English): DARREN SINDEN, INDEPENDENT MARKET ANALYST, SAYING: "To my mind I think we might see the Fed hold fire in September, miss out November because of the US election, and perhaps pull the trigger again in December if the economic data justifies it." But once they start, the jitters are hard to stop. Slides on Wall Street on Friday carrying through to Asia, where shares suffered their sharpest setback since June. And it's not just the Fed that's fueling concern. This week's Bank of England meeting also on the watchlist. (SOUNDBITE) (English): DARREN SINDEN, INDEPENDENT MARKET ANALYST, SAYING: "We've had some good economic data out of the UK. We've got more to come tomorrow and Wednesday so I think that they'll be on hold, waiting to see how the stimulus measures they've put in place pan out next quarter." As ever though, the market appears less patient.