Stocks in Europe advanced along with U.S. index futures on Tuesday as traders reassessed risks from China’s crackdown on the real-estate sector and looked ahead to this week’s Federal Reserve meeting.

Futures on the S&P 500 and Nasdaq 100 gained, suggesting some improvement in sentiment after concerns about fallout from China Evergrande Group’s debt woes roiled markets Monday. Dip-buyers in the last hour of trading Monday helped the S&P 500 pare some losses, though the index still posted the biggest drop since May.

Aside from worries over Evergrande’s ability to make good on $300 billion of liabilities, investors are also positioning for the two-day Fed meeting starting Tuesday, where policy makers are expected to start laying the groundwork for paring stimulus. Treasury yields ticked higher and the dollar was steady.

“So much of this information is already known that we don’t think it will necessary set off a wave of problems,” John Bilton, head of global multi-asset strategy at JPMorgan Asset Management, said on Bloomberg TV. “I’m more concerned about knock-on sentiment at a time when investor sentiment is a bit fragile. But when we look at the fundamentals -- the general growth, and direction in the wider economy -- we still feel reasonably confident that the situation will right itself.”

A Hong Kong gauge of real-estate firms steadied, after developers disputed a report of pressure from the Chinese government. Evergrande slid deeper in equity and credit markets. Concerns remain about broader contagion after S&P Global Ratings said the developer is on the brink of default. China’s markets reopen on Wednesday after holidays.

China’s property-sector upheaval -- part of President Xi Jinping’s broader clampdown on private industries under his “common prosperity” initiative to reduce inequality -- is adding to the risks confronting investors. These include stretched equity valuations and slower economic reopening due to the delta virus strain amid price pressures stoked by commodities. Markets are also digesting an outlook of reduced central bank policy support.

Elsewhere, Bitcoin slid for a third day in volatile trading, tumbling as much as 7.6% before bouncing back to above $43,000. Oil rebounded from two days of declines, while iron ore futures took a breather following Monday’s rout, though stayed below $100 a ton on China’s steel output curbs.

In Canada, Prime Minister Justin Trudeau won a third term in a snap election but fell short of regaining a parliamentary majority. The nation’s currency was among the best performers in the Group-of-10 basket.

Some of the main moves in markets:

Stocks

• Futures on the S&P 500 rose 0.8% as of 7:33 a.m. New York time

• Futures on the Nasdaq 100 rose 0.8%

• Futures on the Dow Jones Industrial Average rose 0.8%

• The Stoxx Europe 600 rose 1%

• The MSCI World index rose 0.1%

Currencies

• The Bloomberg Dollar Spot Index fell 0.1%

• The euro was little changed at $1.1736

• The British pound rose 0.2% to $1.3680

• The Japanese yen was little changed at 109.43 per dollar

Bonds

• The yield on 10-year Treasuries advanced one basis point to 1.32%

• Germany’s 10-year yield was little changed at -0.32%

• Britain’s 10-year yield declined one basis point to 0.78%

Commodities

• West Texas Intermediate crude rose 1.1% to $71.08 a barrel

• Gold futures rose 0.2% to $1,766.70 an ounce

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