Global stock markets mostly fall on Delta variant gloom

European and Asian stock markets were broadly lower Tuesday as investors weighed record gains on Wall Street against fears the resurgent Delta coronavirus variant may put the brakes on the global economic recovery.

Oil prices dropped for a fourth straight session as economic strains in China impact on the demand outlook for crude and other commodities, traders said.

London’s FTSE 100 stocks index was a rare riser, up slightly in midday deals after official data revealed a dip in UK unemployment during the second quarter as its economy began to reopen from lockdown.

Separate figures confirmed that the eurozone economy rebounded 2.0 percent in the April-June period.

On the corporate front, shares in BHP surged seven percent in London after the miner announced a multi-billion-dollar deal to sell its liquid fossil fuels business as it seeks to transition to cleaner energy.

BHP also logged its highest annual profit in almost a decade on runaway copper and iron ore prices.

On Wall Street Monday, the Dow and S&P 500 stocks indices registered record-high closes for a fifth straight session.

This despite the outlook for the global recovery hit by Chinese data this week showing retail sales and industrial production slowing in July.

A rapid growth recovery in China, the world’s second biggest economy after the US, has been threatened by renewed localised virus lockdowns and extensive travel restrictions.

But some cause for optimism may come later in the day, when investors will be closely analysing US retail sales data for signs that the country’s consumer spending remains healthy.

“Investors will be looking for any signs of cracks in the American recovery in the retail numbers but will also be alive to evidence of mounting inflationary pressures,” said AJ Bell investment director Russ Mould.