Energy stocks led gains in the Stoxx Europe 600 index after BP plc followed its Big Oil peers by increasing dividends and share buyback, while banks outperformed Societe Generale SA with a better outlook and return to profit by Bank of Ireland Group Plc.
Tech stocks were the biggest losers, with Tencent Holdings Ltd. plunging as much as 5.7% after Chinese Internet giant Prosus NV declined to hedge fears that the authorities may set their sights on online entertainment next. A Chinese cost probe into automotive chipmakers also rattled the sector, with Infineon Technologies AG's profit miss adding to worries.
The S&P 500 and Nasdaq 100 index volumes experienced modest gains after the spread of the delta Covid-19 variant on Monday, and signs of softer but robust U.S. manufacturing growth contributed to an S&P 500 dip on Monday. The 10 year Treasury yield remained below 1.20% after falling as low as 11%. The real yield on 10-year Treasury notes - which strips out the anticipated effect of inflation - was close to a record low. The Dollar against the big peers slipped.
Oil held a decline as the virus and the indications of a slow Chinese economic rebound hurt the outlook for consumption. The New Zealand and dollar markets jumped on tightening bets. The Australian currency advanced after its central bank kept a plan to taper bond purchases despite a protracted lockdown in Sydney.
The months-long advance in Treasuries for some commentators points to worries that a weaker period lies ahead for the economic reopening from the health crisis. Traders are awaiting key U.S. job data this week to gauge the recovery and monitoring the impact of price pressures sparked by pandemic-related disruption and bottlenecks.
Shana Sissel said in Bloomberg Television that the market is concerned about delta and not only about its effects on inflation but also about coronavirus variant, said Spotlight Asset Group chief investment officer Mark VanZaub of Bloomberg Media. The longer Delta is spread globally the longer the supply chain disruptions will continue.
The tapering debate continues on the policy front. Fed Governor Christopher Waller said he could back a tapering announcement in September if the next two monthly U.S. employment reports show continued gains.
The Reserve Bank of India is expected to keep its benchmark interest rate and its bond-buying target unchanged ThursdayReserve Bank of England monetary policy decision, briefing FridayThe U.S. Job report is expected to show another robust month of hiring Friday
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The Stoxx Europe 600 rose 0.3% at 8:30 am London timeFutures on the S&P 500 climbed 0.3% Futures on the Nasdaq 100 added 0.2% Futures on the Dow Jones Industrial Average advanced 0.4% The MSCI Asia Pacific Index was little changedThe MSCI Emerging Markets Index was little changed
The Bloomberg Dollar Spot Index rose 0.2% The euro rose 0.1% to $1.1882The British yen rose 0.1% to 109.15 per dollarThe offshore yuan was little changed at 6.4623 per dollarThe Japanese pound rose 0.2% to $1.3915.
The yield on 10 - year debts was little changed at 1.18% Britain's 10-year yield advanced two basis points to - 0,47% Germany's yield advanced one base point to 0.53%.
Brent crude was little changedSpot gold fell 0.2% to $1,810. 40 an ounce.