(Bloomberg) — Global stocks fell with U.S. futures as investors dumped Chinese shares amid a regulatory overhaul in the country. Treasuries climbed.
The Hang Seng Index sank 4.2% as speculation swirled that U.S. funds are offloading China and Hong Kong assets. While the losses were more muted in Europe and U.S. futures, the mood was pessimistic across markets. Tesla Inc. rose in premarket trading after its profit topped forecasts.
Risk-off sentiment is spreading ahead of a Federal Reserve meeting and earnings from tech giants including Apple Inc. and Alphabet Inc. While a strong start to the reporting season has helped stocks scale new peaks, the rise in the delta virus variant is spurring concerns about the economic outlook, just as policymakers are watching inflationary pressures to shape monetary policy.
Elsewhere in markets, Treasuries rose with the yen amid demand for haven assets. Chinese bonds slumped, and the yuan slid to its lowest since April against the dollar.
The FTSE 100 Index fell the most in a week after index heavyweight and Lysol maker Reckitt Benckiser Group Plc warned of lower profitability.
Bitcoin traded near $37,000 after briefly rising above $40,000 overnight.
Stocks
The Stoxx Europe 600 fell 0.8% as of 9:27 a.m. London timeFutures on the S&P 500 fell 0.5%Futures on the Nasdaq 100 fell 0.3%Futures on the Dow Jones Industrial Average fell 0.6%The MSCI Asia Pacific Index fell 1.1%The MSCI Emerging Markets Index fell 2%
Currencies
The Bloomberg Dollar Spot Index rose 0.2%The euro fell 0.3% to $1.1772The Japanese yen rose 0.3% to 110.10 per dollarThe offshore yuan fell 0.5% to 6.5130 per dollarThe British pound fell 0.3% to $1.3775
Bonds
The yield on 10-year Treasuries declined four basis points to 1.25%Germany’s 10-year yield declined two basis points to -0.44%Britain’s 10-year yield declined two basis points to 0.56%
Commodities
Brent crude rose 0.2% to $74.63 a barrelSpot gold was little changed
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