European stocks slump as futures steady; oil declines

Bloomberg

European stocks slipped on Monday, with travel shares slumping amid restrictions prompted by coronavirus pandemic (Covid-19) strains, while US futures were little changed alongside Asian equities.
The Stoxx 600 Index was led lower by the likes of Tui AG and EasyJet Plc, with the highly contagious Delta strain threatening to derail summer travel in Europe just as the northern hemisphere summer season kicks off. Contracts on the S&P 500 Index fluctuated following the best week for the underlying gauge since February.
Southeast Asian markets underperformed, led by Malaysia, where a nationwide lockdown was extended. Treasuries held losses, while the dollar was steady. WTI crude oil dipped below $74 a barrel. Bitcoin rises to trade around $35,000 despite a regulatory ban
on crypto exchange Binance Markets Ltd.
Global stocks are trading near a record high as anxiety about the Federal Reserve’s hawkish tilt eased, with investors dialing back concerns that US policy makers will rush to boost interest rates despite mounting inflation pressures. Still, with the recovery on track in much of the world, markets remain sensitive to more central banks debating the withdrawal of emergency stimulus.
“Liquidity is still everywhere and that, for now, will support stocks,” said Charles Diebel, head of fixed income at Mediolanum International Funds. “But I think the market is in an unstable equilibrium right now. The FOMC have signalled they will be more proactive but equally, dislocations in the supply chain will keep price
pressures evident.”
Meanwhile OECD will meet in Paris on Wednesday to finalise a proposal to overhaul global minimum corporate taxation. China’s President Xi Jinping will deliver a speech on Thursday as the nation marks the 100th anniversary of the founding of the Chinese Communist Party.
The Stoxx Europe 600 fall 0.3% as of 9:15 am London time an futures on the S&P 500 were little changed.
While futures on the Nasdaq 100 rise 0.2%, futures on the Dow Jones Industrial Average were little changed and the MSCI Asia Pacific Index was little changed. The MSCI Emerging Markets Index was also little changed
While the Bloomberg Dollar Spot Index was little changed, the euro was little changed at $1.1931 and the Japanese yen was little changed at 110.69 per dollar.
While the offshore yuan was little changed at 6.4631 per dollar, the British pound rises 0.2% to $1.3905.
The yield on 10-year Treasuries was little changed at 1.52% and Germany’s 10-year yield was little changed at 0.16%. Britain’s 10-year yield declined one basis point to around 0.77%.
Brent crude falls 0.3% to $75.93 a barrel and spot gold also drops 0.2% to $1,778.31 an ounce.