Trump Election Victory Threat Gives Europe Economic Nightmares (1)

Central bankers losing sleep over Europe’s souring economies have another worry looming large: how much more damage Donald Trump could cause if he returns to the White House.

With memories of the former US president’s first stint in office still fresh, policymakers know his appetite to wage new trade wars threatens unavoidable fallout on a region whose position is far weaker than last time round. Investors are alive to the dangers too and market strategists say a win for Trump could drive down the euro toward parity with the dollar.

The most tangible concern is the Republican candidate’s pledge to ...