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. Last Updated: 07/27/2016

European Markets Tumble, Stocks and Dollar Retreat

LONDON -- European financial markets tumbled Monday, with stocks, bonds and the dollar all going into a sharp retreat.

European bonds fell across the board, triggering alarm bells around the world that the bond outlook could turn bearish. Markets tumbled as the realization took hold that the chances of an early German rate cut had evaporated for now, dealers said.

German government bonds set the tone with the March future tumbling more than a point. French and Italian bonds followed suit.

Economists urged investors not to panic, saying the sell-off was just profit-taking and position-adjusting ahead of a record quarterly debt auction in the United States.

But the dollar, already under pressure after a sell-off in the Far East, slid through the European day, plumbing lows of 1.4646 Deutsche marks and 104.88 yen.

Even gold's glittering rally of recent day's came to a halt, at least temporarily. Gold closed in London at $414.75, down 40 cents from Friday.