Stocks, Futures Fall With Focus on China, Earnings: Markets Wrap

(Bloomberg) — Stocks fell with U.S. futures on Monday at the start of a busy week of earnings and policy updates, with China’s widening technology crackdown weighing on risk sentiment. Treasuries rose.

Contracts on key U.S. gauges slipped following a record close for Wall Street on Friday. European equities fell from an all-time high as carmakers and banks led losses. Shares in China and Hong Kong tumbled amid a selloff in education tech companies after Beijing announced sweeping reforms of the industry.

Treasuries moved higher as traders braced for possible turbulence from this week’s Federal Reserve meeting, at which officials will likely discuss the outlook for stimulus. Further market cues may also come from a slew of earnings due from Wall street giants including Apple Inc. and Tesla Inc.

While investors have cheered a positive start to the earnings season so far, concerns linger about inflation and the threat to economic growth from the rising delta virus variant. That’s weighed on value stocks, while growth peers are outperforming.

“The second half of the year is going to be this glass half-full, half-empty context” spanning monetary and fiscal support and good earnings but also concern about the virus, Virginie Maisonneuve, Allianz Global Investors global chief investment officer for equities, said on Bloomberg Television.

Read more: Whipsawed Bond Traders Hunker Down for the Return of the Fed

Trade tension is on the radar too. China lashed out at U.S. policies in a tense start to high-level talks in Tianjin, declaring the relationship between the world’s two largest economies in a “stalemate.”

Elsewhere, Bitcoin jumped toward $40,000, continuing a recent rally. Cryptocurrency-linked stocks including MicroStrategy Inc. and Coinbase Global Inc. also climbed in U.S. premarket trade.

Crude oil declined, while the Japanese yen outperformed in the Group-of-10 currencies amid a mood of caution.

Here are some key events to watch this week:

Tesla, Alphabet, Apple, Facebook, Amazon report earnings this weekFederal Reserve policy meeting concludes WednesdayU.S. GDP data are due Thursday

These are some of the main moves in markets:

Stocks

The Stoxx Europe 600 fell 0.4% as of 9:46 a.m. London timeFutures on the S&P 500 fell 0.4%Futures on the Nasdaq 100 fell 0.2%Futures on the Dow Jones Industrial Average fell 0.6%The MSCI Asia Pacific Index fell 1%The MSCI Emerging Markets Index fell 2.1%

Currencies

The Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1779The Japanese yen rose 0.3% to 110.25 per dollarThe offshore yuan fell 0.1% to 6.4855 per dollarThe British pound rose 0.2% to $1.3769

Bonds

The yield on 10-year Treasuries declined four basis points to 1.23%Germany’s 10-year yield declined two basis points to -0.44%Britain’s 10-year yield declined three basis points to 0.55%

Commodities

Brent crude fell 1.2% to $73.21 a barrelSpot gold rose 0.4% to $1,809.18 an ounce

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