European stock markets are easing off......>

EQUITIES: European stock markets are easing off recent highs early Tuesday, with

core markets off 1.0-1.4%, with Germany's DAX underperforming while Italian

stocks post far shallower losses of 0.4%.

- The sectoral breakdown shows no uniform swing in sentiment (i.e. defensives

outperforming cyclicals), with real estate, healthcare and tech the hardest hit

sectors while utilities and consumer staples are lower, but only mildly so. The

sharpest individual fallers today include large cap German names (denting the

DAX in particular) after an adverse judge ruling on Bayer's Roundup settlement

plans, with lockdown-sensitive firms including UK's Whitbread and Compass Group

also dropping.

- Outperforming today are UK homebuilders Redrow, Barratt Development and

Persimmon ahead of tomorrow's Summer Statement from UK Chancellor Sunak, who may

slash stamp duty on homes up to Gbp500,000.

- US futures are suitably lower, easing off overnight highs of 3,184, but remain

comfortably above the Monday lows which keeps the outlook positive.