European stocks are likely to open lower on Monday after U.S. Treasury Secretary Janet Yellen said Sunday she was “very concerned” about the Delta and other variants of the coronavirus that could emerge and threaten recovery.

“We are a connected global economy, what happens in any part of the world affects all other countries,” she told reporters following a G20 meeting in Venice, Italy.

Meanwhile, the G20 Finance Ministers on July 10 gave their backing to an “historic” plan which will see multinational companies (MNCs) pay their “fair share” of tax around the world.

Yellen will attend a Eurogroup meeting today in Brussels, with discussion on digital tax likely to be top on the agenda.

Asian markets started the week higher, the dollar was up and Treasury yields held steady as investors waited for cues from key U.S. inflation data due on Tuesday and testimony by Federal Reserve Chair Jerome Powell on Wednesday and Thursday.

China’s Shanghai Composite index rose about 1 percent after the country’s central bank cut the amount of money commercial lenders must set aside as reserves in an effort to sustain a recovery from the pandemic.

Elsewhere, the European Central Bank will change its guidance on the next policy steps at its July 22 meeting to reflect its new strategy, ECB President Christine Lagarde said in an interview.

Gold edged lower in Asian trade while oil slipped after rising for a second day on Friday amid signs of falling U.S. inventories.

U.S. stocks hit record highs on Friday as Treasury yields extended their rise, helping offset lingering worries about the spread of the new COVID-19 variants.

The Dow rallied 1.3 percent, the tech-heavy Nasdaq Composite added 1 percent and the S&P 500 advanced 1.1 percent.

European markets rose sharply on Friday, riding on gains in travel-related stocks and miners.

The pan European Stoxx 600 gained 1.3 percent. The German DAX surged 1.7 percent, France’s CAC 40 index jumped 2.1 percent and the U.K.’s FTSE 100 climbed 1.3 percent.

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