(Bloomberg) — European stocks fell and U.S. index futures were mixed as an earnings-driven rally stalled amid a deepening supply crunch and coronavirus curbs in China. The Treasury yield curve steepened before the Federal Reserve’s policy meeting.
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December contracts on the Dow Jones Industrial Average slipped after the underlying gauge surged past the 36,000 mark on Monday. Russell 2000 contracts rose. The yield on the 30-year U.S. bond widened its gap with the two-year rate by three basis points. Iron-ore futures tumbled on shrinking steal output in China. Tesla Inc. led premarket losses in New York.
Bond and currency markets are bracing for the Fed to announce a tapering of asset purchases as an initial step to eventually raising interest rates to contain inflation. Equity markets, on the other hand, are focusing on earnings growth and valuations. Meanwhile, mixed data on the global economic revival is…