* Stocks pulled lower, delay to U.S. healthcare taints Trump again
At the same time, core European bonds are the significant area of vulnerability to better euro zone growth and to changes in ECB policy, he added.
* Euro hits one year high, Deutsche Bank calls end of dollar rally
"The market got ahead of itself in the first quarter with (hopes for) Trump's infrastructure plans, that's not happening now but against that China growth is ok," said SP Angel analyst John Meyer.
Wall Street's drop on Tuesday saw it close at its lowest since May 31. It was spooked after the U.S. Senate delayed voting on a healthcare reform bill, rekindling worries about the timeline of Donald Trump's business-friendly policies. (.N)
* Bond markets sell-off continues on stimulus unwind bets
The greenback also slumped against the Canadian dollar after Bank of Canada Governor Stephen Poloz told CNBC that it looked like the central bank's rate cuts have done their job.
* Graphic: World FX rates in 2017 ()
The common currency is now up almost 10 percent this year. The head of the Federal Reserve, Janet Yellen, and one of her lieutenants, Patrick Harker, said on Tuesday that they expected to continue raising U.S. interest rates, but it couldn't rally the dollar.
Emerging markets were caught in the global stocks sell off and commodities were also on the move.
* Crude oil futures give back some of their overnight surge
"If you are looking at a 10-year maturity and further out, it is a global bond market and the extremely low yields in core Europe stick out alongside Japan and Switzerland as the places that seem stretched in terms of valuation."
Japan's Nikkei (.N225) ended down 0.5 percent, as the yen, at 111.900 (JPY=EBS) , also took advantage of the dollar's weakness. The banking and insurance sectors however outperformed on expectations of higher rates. (.T)
"I do think the euro now has got quite significant momentum behind it and I think that will build towards the confirmation of some tapering announcement this year. So I would be long the euro on a tactical basis for the rest of the year," JPMorgan Asset Management's Global Market Strategist, David Stubb, said.
Nerves over the latest cyberattack, this time called Goldeneye, weighed on big tech names including Apple (AAPL.O) , Google-parent Alphabet (GOOGL.O) , Facebook (FB.O) and Microsoft (MSFT.O) in premarket trading.
LONDON, June 28 (Reuters) - The euro hit a 1-year high on Wednesday and German 10-year Bund yields continued to rise after doubling the previous day, as bets grew that the European Central Bank is readying to scale back its 2-trillion-euro stimulus programme.
For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=(?pageId=livemarkets)
Brent crude futures (LCOc1) were down 0.2 percent at $46.55 per barrel. U.S. crude futures (CLc1) were down 0.5 percent at $44.04.
* Vote on U.S. healthcare reform delayed until next month
"Yellen's comment is supporting Japanese financial stocks today, and for the long-term, Japanese stocks are on the rising trend supported by U.S.-led global economic recovery," said Mutsumi Kagawa, chief global strategist at Rakuten Securities.
Federal Reserve chief Janet Yellen had said in London that it was appropriate to "gradually" raise U.S. rates, although there was an acknowledgement that inflation had seen some slippage.
