Europe stocks fluctuate; Asia dips on China curbs: markets wrap

European stocks fluctuated on a mixed batch of earnings, while Asian shares dipped for the first time this week as China widened its regulatory crackdown on business.

The Stoxx 600 Index was little changed on Thursday as gains in travel and leisure firms offset declines in miners. Aegon NV climbed after posting second-quarter results, while Germany’s Bechtle AG slipped on earnings. Tour operator TUI AG shares advanced as holiday bookings surged.

Most Asian markets fell after China released a five-year plan calling for greater business regulation as Beijing pursues a crackdown that has shaken investors. One of the latest steps is stepped up scrutiny of insurance technology platforms. The country is also grappling with fresh Covid outbreaks, partly shutting the world’s third-busiest container port after a worker became infected.

Treasuries held most of their gain following a strong auction of 10-year debt on Wednesday and data showing inflation moderated in July. The dollar strengthened, while US equity futures were little changed.

Investors are continuing to evaluate the implications of a likely Fed tapering announcement in the months ahead, the spread of the delta virus variant and China’s clampdown. Global stocks are up about 90% since the pandemic nadir in March 2020, spurring questions about how much further they can climb. While Wednesday’s CPI numbers suggest the Fed might take a slower path toward normalisation, Kansas City Fed President Esther George said the central bank needs to move ahead with reducing monetary stimulus.

“There is a lot being read into the month over month numbers, but one month does not make a trend,” Jeanette Garretty, chief economist at Robertson Stephens Wealth Management, said on Bloomberg Television, referring to the US inflation data. “It is a little too early to say that this is conclusive evidence that we can see some of the heat on prices coming off. Some of the heat is off but not all of the heat is off.”

Elsewhere, oil held a climb as a weaker dollar offset a smaller-than-expected decline in crude stockpiles. Bitcoin slid closer to $45 000 following a sharp rally since mid-July.

Here are some key events to watch out for this week:

• OPEC Monthly Oil Market Report due Thursday

These are the main moves in markets:

Stocks

• The Stoxx Europe 600 was little changed as of 8:22 a.m. London time
• Futures on the S&P 500 were little changed
• Futures on the Nasdaq 100 fell 0.2%
• Futures on the Dow Jones Industrial Average were little changed
• The MSCI Asia Pacific Index fell 0.4%
• The MSCI Emerging Markets Index fell 0.5%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro was little changed at $1.1734
• The Japanese yen was unchanged at 110.43 per dollar
• The offshore yuan rose 0.2% to 6.4794 per dollar
• The British pound was little changed at $1.3863

Bonds

• The yield on 10-year Treasuries advanced one basis point to 1.34%
• Germany’s 10-year yield was little changed at -0.46%
• Britain’s 10-year yield was little changed at 0.57%

Commodities

• Brent crude fell 0.2% to $71.29 a barrel
• Spot gold rose 0.2% to $1 755.05 an ounce