European Shares Set For Softer Start


European stocks are seen opening lower on Tuesday as investors fret about downside risks to growth posed by the Delta variant of the coronavirus.

Asian markets were mixed as the spread of the Delta variant from the mainland’s coast to China’s inland cities prompted authorities to implement strict counter epidemic measures.

The seven-day average of daily coronavirus infections in the United States has quadrupled from the levels recorded a month ago, according to data analyzed by the New York Times.

Lingering worries over stricter regulations in China on a range of sectors ranging from technology, fintech and education also weighed on sentiment.

The dollar weakened after data showed U.S. manufacturing growth slowed for the second straight month. The 10-year U.S. Treasury yield remained below 1.20 percent after falling as low as 1.15 percent.

Gold slipped as investors awaited cues from a key U.S. non-farm payroll data due later this week. Oil extended overnight losses on fuel demand concerns.

The Aussie dollar remained in high spirits as the Reserve Bank of Australia maintained plans to scale back its extraordinary $237 billion monetary stimulus from next month despite Sydney’s prolonged lockdown.

U.S. stocks reversed early gains to end mixed overnight as strong earnings and progress on a U.S. infrastructure spending plan were offset by weak manufacturing data.

The Dow dropped 0.3 percent and the S&P 500 slid 0.2 percent while the tech-heavy Nasdaq Composite index inched up 0.1 percent.

European stocks rose on Monday as optimism around earnings and economic reopening outweighed data showing signs of slowing growth in China.

The pan European Stoxx 600 climbed 0.6 percent. The German DAX edged up 0.2 percent, France’s CAC 40 index rallied 1 percent and the U.K.’s FTSE added 0.7 percent.

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