Oil, Europe equity futures steady after steep drop
Euro huddles at 20yr low; sterling squeezed
China stocks slip on fresh Shanghai virus outbreak

TOKYOSINGAPORE, July 6 Reuters Asian stocks fell and the dollar stood by a twodecade high on the euro on Wednesday as investors39; fears deepened that the continent is leading the world into recession, while oil and European equity futures made a wobbly attempt to steady.

Brent crude futures have slid this month on worries that a global slowdown will sap demand. Prices slumped 9.5 to a 212 month low of 101.10 on Tuesday, before bouncing slightly to 103.86 a barrel in the Asia session on Wednesday.

MSCI39;s index of AsiaPacific stocks outside Japan fell 1, led by a 2 drop for Taiwan39;s benchmark index  heavy with growthsensitive computer chip makers which hit an 18month low. Japan39;s Nikkei fell 1.1.

SP 500 futures fell 0.1 while FTSE futures and EuroSTOXX 50 futures rose 1 after heavy Tuesday selling.

News has been relentlessly negative, with talk of gas rationing in Europe, a political crisis in Britain and a fresh flare up of COVID19 cases prompting fresh restrictions in Shanghai.

In the United States, the twoyear Treasury yield has dropped below the 10year yield , a reliable market signal of a recession capping growth in the medium term.

The drumbeat is getting louder and louder about recession risk, said Jason Teh, chief investment officer at Vertium Asset Management in Sydney.

Right now defence is the name of…