Falling Futures After Delta Option Overturns Asian Session
European stock futures are trading lower ahead of Monday’s opening, indicating a negative start for the “old continent” following in the footsteps of Asian markets, where the spread of covid-19 continues to delay economic recovery.
Overnight in Lisbon, the stock markets of Japan (-1.6%) and Hong Kong (-1%) lost strength, while the search for assets considered safer, such as the yen, at a time when Tokyo, the capital of Japan, may once again introduce a state of emergency, taking into account the spread of the Delta option.
In China, the Shanghai Index is up 0.1%, but tech stocks continue to be under pressure from the Beijing government. The latest data on retail sales in China rose less than expected, and the virus added new risks to the world’s second largest economy.
Investors are still watching worries in the US Congress after the Taliban took control of Afghanistan, while the remaining NATO troops, led by the US, leave the country.
Stocks in the US and Europe hit record highs last week following COVID-19 vaccination programs. But the Delta option threatens market sentiment.
The focus will be on the minutes of the last Fed meeting and the speech by central bank leader Jerome Powell, as they may provide clues to the future of monetary policy in the country.
