Stocks slump amid Fed, China risks; dollar gains, but US contracts slide more than 1%

NEW YORK. Stocks in Europe plunged and US equity futures declined at the start of a week abounding with risks including spillover from China Evergrande Group’s debt woes, falling commodity prices and the Federal Reserve policy meeting. Treasury yields fell.

The Stoxx Europe 600 index dropped 1.9 per cent, on track for the biggest decline in two months. Raw materials led the broad-based retreat as iron ore extended a slump below $100 (Dh367) a ton after China stepped up restrictions on industrial activity. Base metals including copper also slipped as the dollar rose before tomorrow’s Fed meeting, where policy makers are expected to start laying the groundwork for paring stimulus. Germany’s DAX underperformed as a rebalancing takes effect.

US contracts slid more than 1 per cents after the S&P 500 fell the most in a month.