<p>European stocks retreated on Monday after more countries halted use of the AstraZeneca Covid-19 vaccine, while US stocks dipped from record highs.</p>.<p>The dollar firmed ahead of Wednesday's US Federal Reserve monetary policy meeting.</p>.<p>"European stocks have struggled throughout the day, and the selling accelerated in the afternoon after France and Italy became the latest European nations to halt the use of the AstraZeneca-Oxford Covid jab, following Germany and a few other nations," said market analyst Fawad Razaqzada at ThinkMarkets.</p>.<p>Denmark halted use of the AstraZeneca vaccine last week following concerns it may be linked to blood clots, prompting a growing number of European countries to follow suit.</p>.<p>European medical regulators and the World Health Organization have said the vaccine is safe to use and there is no evidence linking it to blood clotes.</p>.<p>"However, if the AstraZeneca jab is proven to cause blood clots, and more countries are forced to stop using it then this will provide a major setback in the race to end lockdowns," said Razaqzada.</p>.<p>Both London and Paris closed 0.2 per cent lower, while Frankfurt shed 0.3 per cent.</p>.<p>Meanwhile in midday trading on Wall Street, both the Dow and S&P 500 dipped from record highs set on Friday. The tech-heavy Nasdaq Composite edged higher.</p>.<p>"It appears the bulls are taking a breather in light of solid gains that were posted last week," said David Madden at CMC Markets UK.</p>.<p>Brent oil topped $70 per barrel on positive industrial production and retail sales data in key crude consumer China but then fell back.</p>.<p>Bitcoin stood around $56,000 after hitting a record $61,742 on Saturday on keen demand for the world's most popular cryptocurrency.</p>.<p>Asian stock markets closed mixed as early rallies ran out of steam.</p>.<p>Investors have been emboldened this year as Covid vaccine rollouts and the easing of most lockdowns have stoked recovery hopes.</p>.<p>Bets on a strong rebound increased last week as US President Joe Biden signed off on his $1.9-trillion stimulus plan, which includes big cash handouts for struggling Americans.</p>.<p>This week's Fed meeting comes as investors fret that a strong US recovery will fan inflation and force an interest rate hike earlier than previously expected.</p>.<p>That is reflected in the spike in government debt yields, particularly benchmark 10-year Treasury notes -- a canary in the coal mine for coming price increases.</p>.<p>"The passage of the $1.9-trillion American rescue plan is set to release another boost to a US economy which was already showing some signs of a turnaround," said Richard Hunter, head of markets at trading firm Interactive Investor.</p>.<p>"The current fear is that the package could actually overheat the economy, and the meeting of the Federal Reserve later in the week will need to allay that concern."</p>
<p>European stocks retreated on Monday after more countries halted use of the AstraZeneca Covid-19 vaccine, while US stocks dipped from record highs.</p>.<p>The dollar firmed ahead of Wednesday's US Federal Reserve monetary policy meeting.</p>.<p>"European stocks have struggled throughout the day, and the selling accelerated in the afternoon after France and Italy became the latest European nations to halt the use of the AstraZeneca-Oxford Covid jab, following Germany and a few other nations," said market analyst Fawad Razaqzada at ThinkMarkets.</p>.<p>Denmark halted use of the AstraZeneca vaccine last week following concerns it may be linked to blood clots, prompting a growing number of European countries to follow suit.</p>.<p>European medical regulators and the World Health Organization have said the vaccine is safe to use and there is no evidence linking it to blood clotes.</p>.<p>"However, if the AstraZeneca jab is proven to cause blood clots, and more countries are forced to stop using it then this will provide a major setback in the race to end lockdowns," said Razaqzada.</p>.<p>Both London and Paris closed 0.2 per cent lower, while Frankfurt shed 0.3 per cent.</p>.<p>Meanwhile in midday trading on Wall Street, both the Dow and S&P 500 dipped from record highs set on Friday. The tech-heavy Nasdaq Composite edged higher.</p>.<p>"It appears the bulls are taking a breather in light of solid gains that were posted last week," said David Madden at CMC Markets UK.</p>.<p>Brent oil topped $70 per barrel on positive industrial production and retail sales data in key crude consumer China but then fell back.</p>.<p>Bitcoin stood around $56,000 after hitting a record $61,742 on Saturday on keen demand for the world's most popular cryptocurrency.</p>.<p>Asian stock markets closed mixed as early rallies ran out of steam.</p>.<p>Investors have been emboldened this year as Covid vaccine rollouts and the easing of most lockdowns have stoked recovery hopes.</p>.<p>Bets on a strong rebound increased last week as US President Joe Biden signed off on his $1.9-trillion stimulus plan, which includes big cash handouts for struggling Americans.</p>.<p>This week's Fed meeting comes as investors fret that a strong US recovery will fan inflation and force an interest rate hike earlier than previously expected.</p>.<p>That is reflected in the spike in government debt yields, particularly benchmark 10-year Treasury notes -- a canary in the coal mine for coming price increases.</p>.<p>"The passage of the $1.9-trillion American rescue plan is set to release another boost to a US economy which was already showing some signs of a turnaround," said Richard Hunter, head of markets at trading firm Interactive Investor.</p>.<p>"The current fear is that the package could actually overheat the economy, and the meeting of the Federal Reserve later in the week will need to allay that concern."</p>