Stocks staunch sell-off even as global economy fears linger

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Stocks staunch sell-off even as global economy fears linger

LONDON- Global shares staunched a sell-off on Tuesday, but U.S. Treasury and German bond yields slipped to fresh five-month lows as a reminder that investors remained worried the spread of the Delta coronavirus variant could derail the economic recovery. After their worst sell-off this year on Monday, Europe's STOXX 600 added 0.2%, down from highs earlier in the session due to positive corporate earnings and production updates from miners. In the United States, e-mini futures for the S&P 500 index ESc1 were up 0.4%. The positive moves followed more selling in Asia, with MSCI's gauge of Asia Pacific stocks outside Japan falling 0.6% and Japan's Nikkei 225 hitting a six-month low, down nearly 1%. China deleveraging risks hurt property stocks and the broader market for a second day, causing a plunge in shares of heavily indebted developer China Evergrande Group. The Hang Seng Index dropped 0.8% while China's blue chip CSI300 Index was 0.1% lower. MSCI's broadest gauge of global shares was 0.2% lower, extending its longest losing streak in nearly 18 months. "The reality is that this price action has become somewhat self-fulfilling as the myopic investor sentiment and positioning are forced to re-assess," said James Athey, investment director