European stocks and Dow futures pull back before earnings and next wave of data

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European stocks, Dow futures reverse part of Monday's gains

After a 1.6% surge on Monday on hopes for Chinese stimulus, the Stoxx Europe 600 SXXP, -0.99% lost 1.1%.

The index has climbed 33% from its March low. The U.S. S&P 500 SPX, +1.58% has climbed 42% from the depths of March. The major regional indexes also dropped, with the German DAX DAX, -1.26%, French CAC 40 PX1, -1.11% and U.K. FTSE 100 UKX, -1.26% retreating.“While the stock market has decoupled from the economy in recent months, there is the potential that earnings season could reunite them, albeit temporarily, and make stocks more sensitive to rising infection rates as well as a possible lack of fiscal stimulus,” said Kristina Hooper, chief global market strategist at Invesco. U.S.

German industrial production rebounded a slower-than-forecast 7.5% in May, according to data released Tuesday. The European Commission lowered its eurozone economic forecast by a percentage point, now seeing a contraction of 8.7% this year. iframe.twitter-tweet { width: 100% !important; } Job-openings data highlight a quiet U.S. economics calendar.

 

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