Investors are racing to buy British debt as traders ramp up bets that the Bank of England will start cutting interest rates before the US Federal Reserve. Official data showed the US rose by more than expected in March in a blow to US rate cut hopes.
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The Euro Stoxx 50 index fell by around 2% while the key German, French, Dutch and Spanish benchmarks each fell by between 1.3 and 2.4% and the euro fell to $0.9923.