Need the lowdown on what’s transferring European markets in your inbox each morning? Join right here.Good morning. There was a symbolic second in U.S.-China tensions, Spain is once more the main target of Europe’s coronavirus disaster and a know-how agency plans to cash in on one in all its items. Right here’s what’s transferring markets.U.S. Flag Lowered The U.S. lowered its flag over the American consulate within the Chinese language metropolis of Chengdu, the most recent historic milestone marking the deterioration in relations between Washington and Beijing. The transfer got here lower than three days after the U.S. authorities compelled their Chinese language counterparts out of their mission in Houston, with a whole lot of individuals gathering exterior the constructing in Chengdu on Saturday as American workers ready to go away. The consulate closures are probably the most tangible casualties of one of many worst disputes between the U.S. and China since two sides formally established relations in 1979.Spain ScramblesSpain is scrambling to remain forward of recent outbreaks of the coronavirus that prompted the UK. to impose a quarantine on vacationers getting back from the nation, an order attacked by each the Spanish authorities and two main British airways. Britain itself, in the meantime, introduced it will pause reporting on Covid-19 deaths whereas it critiques how they’re calculated. In Asia, China had probably the most home circumstances since mid-March amid flareups within the west and northeast, whereas Hong Kong will ban all dine-in providers at eating places and require masks open air from Wednesday, native Cable TV reported this morning. This is a reminder of how the sickness is transmitted. SAP’s PlansEurope’s largest know-how firm, SAP SE, is promoting a stake in its Qualtrics customer-survey software program unit by a U.S. public providing, lower than two years after shopping for the agency to assist compete with Salesforce Inc. Qualtrics’ market value might be from 10 to 16 billion euros if it lists, serving to SAP scale back debt, Bloomberg Intelligence analysts wrote in a observe. Qualtrics founder Ryan Smith, who began the agency with brother Jared within the basement of their dad and mom’ residence in Utah, would be the largest particular person shareholder.Stocks Edge UpEuropean and U.S. stock futures are edging greater after final week’s declines regardless of the most recent on U.S.-China tensions, whereas the greenback index ticked down to the touch the bottom stage in additional than a yr. Billionaire investor Ray Dalio warned that the battle may develop right into a “capital war” and hurt the U.S. forex. Elsewhere, spot gold climbed to an all-time excessive, presumably reflecting the present troubles of the worldwide economic system, whereas crude oil futures trimmed early losses.Coming Up…Airline Ryanair Holdings Plc predicted it can proceed dropping cash by the summer time because it kicked off a busy earnings week, whereas telecommunications group Koninklijke KPN N.V. and luxurious large LVMH are as a consequence of replace later. In information, there is a German Ifo enterprise survey and U.S. sturdy items numbers after China industrial income statistics confirmed continued enchancment in June, with returns at industrial corporations rising for the second month in a row. This is a roundup of some key macroeconomic occasions to be careful for within the coming days.What We’ve Been ReadingThis is what’s caught our eye over the weekend. And eventually, this is what Cormac Mullen is on this morningAsset managers have by no means been extra bullish about prospects for the euro. Web-long positions within the widespread forex held by institutional traders have surged to a report excessive, in accordance with the most recent Commodity Futures Buying and selling Fee information. And its onerous to fault their enthusiasm — the euro is up over 4% in opposition to the greenback this month within the aftermath of the historic settlement on a rescue package deal for the bloc and the slide within the buck which continued early Monday. However there are a couple of indicators for warning. Technicals counsel the shared forex has climbed into overbought territory, not less than in accordance with its 14-day relative power index — a gauge of momentum. Hedge fund bullish bets are additionally not far off report highs, implying euro power has quick turn into a consensus commerce. And whereas high-frequency financial information exhibits Europe in a greater place now than the U.S. and different friends, renewed coronavirus outbreaks in Spain and Germany ought to remind us it’s nonetheless early within the restoration course of and issues can rapidly flip. The rescue deal was certainly an vital milestone that ought to give consolation to traders in Europe. However it’s behind us now and merchants may want some brisker catalysts to maintain the euro bull run going.Cormac Mullen is a Cross-Asset reporter and editor for Bloomberg Information in Tokyo.Like Bloomberg’s 5 Issues? Subscribe for limitless entry to trusted, data-based journalism in 120 international locations all over the world and achieve skilled evaluation from unique every day newsletters, The Bloomberg Open and The Bloomberg Shut.