By Steve Goldstein, MarketWatch
Stocks in Europe pulled back on Tuesday, as traders wait for the next wave of information on the economy, the spread of coronavirus and corporate earnings.
After a 1.6% surge on Monday on hopes for Chinese stimulus, the Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -3.24% lost 1.1%.
The index has climbed 33% from its March low. The U.S. S&P 500 /zigman2/quotes/210599714/realtime SPX -1.16% has climbed 42% from the depths of March.
The major regional indexes also dropped, with the German DAX /zigman2/quotes/210597999/delayed DX:DAX -4.37% , French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -3.74% and U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -3.38% retreating.
Gains might be tougher before the start of second-quarter earnings season.
“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. lawmakers have yet to agree to a new round of unemployment benefits.
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.
Job-openings data highlight a quiet U.S. economics calendar.
Futures on the Dow industrials /zigman2/quotes/210407078/delayed YM00 -1.99% declined 293 points.