(Bloomberg) -- The global equity rally paused on Tuesday after a strong start to the week, with European shares slipping alongside U.S. stock futures. The dollar snapped a five-day losing streak.
The Stoxx Europe 600 Index fell, dragged lower by banks and health care shares, as data showed German industrial production rose less than forecast in May, underscoring the challenges as the region emerges from lockdown. The Shanghai Composite climbed for a sixth day, iron ore futures jumped and the offshore yuan briefly strengthened through the 7 per dollar level for the first time since March. Treasuries edged higher alongside most European bonds.
Contracts on the main American equity benchmarks dropped, a day after tech gains pushed the Nasdaq Composite to a record high.
Investors are catching their breath after a ferocious start to the week, even as the pace of new Covid-19 cases globally raises concerns about another virus wave. A surge in Chinese shares Monday helped push global stocks to their highest since early June, with traders putting their faith in an economic recovery powered by historic government stimulus and readying for the upcoming earnings season.
Elsewhere, oil edged lower toward $40 a barrel in New York ahead of U.S. government data that’s forecast to show gasoline stockpiles increased.
Here are some key events coming up:
The EIA crude oil inventory report comes Wednesday.All eyes will be on the U.S. weekly jobless claims report on Thursday.Singapore holds its general election on Friday.Rate decisions in Australia and Malaysia Tuesday.
These are the main moves in markets:
Futures on the S&P 500 Index declined 0.6% as of 8:08 a.m. London time.The Stoxx Europe 600 Index fell 0.7%.The MSCI Asia Pacific Index dipped 0.5%.The MSCI Emerging Market Index dipped 0.6%.
The Bloomberg Dollar Spot Index jumped 0.2%.The euro decreased 0.1% to $1.1294.The British pound dipped 0.1% to $1.2481.The onshore yuan was little changed at 7.022 per dollar.The Japanese yen weakened 0.2% to 107.55 per dollar.
The yield on 10-year Treasuries dipped one basis point to 0.67%.The yield on two-year Treasuries decreased less than one basis point to 0.15%.Germany’s 10-year yield fell two basis points to -0.45%.Britain’s 10-year yield sank two basis points to 0.183%.Japan’s 10-year yield dipped less than one basis point to 0.037%.
West Texas Intermediate crude sank 1.3% to $40.11 a barrel.Brent crude fell 1.2% to $42.59 a barrel.Gold weakened 0.1% to $1,783.26 an ounce.
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