US, Europe markets mostly lower as virus fears hit oil prices

[NEW YORK] Stock markets were mostly lower on Monday, weighed down by a slump in oil prices over concerns about the economic impact of rising infections from the highly contagious Delta variant of the novel coronavirus.

"Oil prices have tumbled again as the spread of Delta and restrictions that come with it, particularly in China, is causing real concern," said Oanda Europe analyst Craig Erlam.

"We're seeing surges in a variety of countries which will likely weigh on the recovery in the coming months, just as it was starting to gather pace."

London's FTSE 100 ended the day back in the black, edging up by around 0.1 per cent, while stock prices in both Frankfurt and Paris were weaker.

On the other side of the Atlantic, both the Dow and S&P 500 retreated from records, finishing modestly lower. The tech-rich Nasdaq mustered a small gain.

Commodities such as oil "have been hurt by growing concerns over the Delta variant of the coronavirus," said ThinkMarkets analyst Fawad Razaqzada.

"Rising cases and more lockdowns have had a direct impact on travel and thus oil demand recovery."

Oil prices were down by more than two per cent on Monday.

The dollar was mixed against its biggest rivals.

Key reports this week include an inflation read from the consumer price index on Wednesday, as well as earnings from Disney on Thursday.

Also in investors' sights will be the possible approval in the Senate of a US$1.2-trillion (S$1.7 trillion) infrastructure bill backed by President Joe Biden after it cleared a key procedural vote on Sunday.

On Monday, Bitcoin steadied after surging more than 20 percent over the weekend to more than US$45,000.

Analysts said cryptocurrencies were enjoying a recovery after weeks of being buffeted by Chinese moves to crack down on the sector.

AFP