March 22, 2017 / 1:07 PM / 8 months ago

Market gauge of long-term euro zone inflation expectations hits 4-month low

LONDON, March 22 (Reuters) - A key market measure of long-term inflation expectations in the euro zone fell on Wednesday to its lowest level in almost four months, as investors began to doubt the promises of pro-growth stimulus measures from the United States.

President Donald Trump is trying to rally support behind a healthcare bill, and failure to do so could signal trouble for promised tax cuts and relaxed regulation that investors reckon will support growth and inflation globally.

The five-year, five-year breakeven forward rate, a market measure of the euro zone’s long-term inflation expectations tracked by the European Central Bank, fell to 1.64 percent , the lowest since the end of November. (Reporting by John Geddie; Editing by Jamie McGeever)

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