Arguments for calling a halt to the credit tightening were strengthened on Monday as early July business surveys for the euro area came in well below forecasts, showing a deepening contraction in overall activity this month.
The euro dropped more than half a percent against the dollar as euro government debt yields fell back, with an indecisive weekend election result in Spain adding pressure.
With the ongoing slide in manufacturing still the biggest drag and due in large part to China's spluttering post-Covid recovery, further turbulence in China's property markets will only increase the anxiety.
For Wall St, the looming Fed decision dominates this week - with a check on U.S. July business surveys topping the data on Monday's calendar in another huge corporate earnings week.
U.S. Treasury yields fell back, but the dollar (.DXY) climbed against the euro, yuan and sterling - also hit by disappointing UK business readings for July.
Persons:
Mike Dolan, China's, readouts, Dow Jones, Brown
Organizations:
Futures, Bank of, Dalian, Japan's Nikkei, Tech, Microsoft, Dow, Nasdaq, Treasury, Chicago Fed, Whirlpool, Packaging Corp of America, Cadence, Trade Organization, Reuters, Thomson
Locations:
U.S, China, Bank of Japan, Spain, United States, Alexandria, Geneva