Europe Stocks Drop as Futures Steady; Oil Dips: Markets Wrap – Yahoo Finance

(Bloomberg) — European stocks slipped on Monday, with travel shares slumping amid restrictions prompted by Covid-19 strains, while U.S. 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 rose 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 U.S. 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.”

Read: Peak Central Bank Support Marks New Phase for World Recovery

For more market commentary, follow the MLIV blog.

Here are some events to watch in the markets this week:

OECD meets in Paris to finalize a proposal to overhaul global minimum corporate taxation WednesdayChina’s President Xi Jinping will deliver a speech as the nation marks the 100th anniversary of the founding of the Chinese Communist Party ThursdayOPEC+ ministerial meeting ThursdayECB President Christine Lagarde speaks FridayThe U.S. jobs report is forecast to show an acceleration in payrolls growth in June Friday

These are some of the main moves in markets:

Stocks

The Stoxx Europe 600 fell 0.3% as of 9:15 a.m. London timeFutures on the S&P 500 were little changedFutures on the Nasdaq 100 rose 0.2%Futures on the Dow Jones Industrial Average were little changedThe MSCI Asia Pacific Index was little changedThe MSCI Emerging Markets Index was little changed

Currencies

The Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1931The Japanese yen was little changed at 110.69 per dollarThe offshore yuan was little changed at 6.4631 per dollarThe British pound rose 0.2% to $1.3905

Bonds

The yield on 10-year Treasuries was little changed at 1.52%Germany’s 10-year yield was little changed at -0.16%Britain’s 10-year yield declined one basis point to 0.77%

Commodities

Brent crude fell 0.3% to $75.93 a barrelSpot gold fell 0.2% to $1,778.31 an ounce

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