World stocks snapped a four-day rising streak on Monday as a widening crackdown on some parts of the world's second biggest economy by regulators sent shudders through global markets.

Education stocks tumbled as Beijing's crackdown on for-profit tutoring sent blue-chip Chinese stocks falling to their lowest level in 10 weeks.

China's property sector was also at the receiving end with media reports that the central bank is directing lenders in Shanghai to raise mortgage rates following a crackdown on tech-related stocks.

Add rising COVID cases in Asia -- Thailand posted a record number of COVID cases for a second day -- and it's a gloomy start to the week for markets.

European stocks were set to open lower; U.S. stock futures indicated a weak Wall Street open.

Still, U.S. stock markets continue to be the beneficiaries of China's tightening measures. Nasdaq futures steadied near historic highs and 10-year U.S. Treasury yields held near their lowest levels since February on growing bets that the Fed will reiterate its dovish rhetoric when it meets this week.

More than one-third of S&P 500 companies meanwhile are set to report quarterly results this week, headlined by Facebook, Tesla, Apple and Alphabet. With just over one-fifth of the S&P 500 having reported, 88% of firms have beaten the consensus of analysts' expectations.

That's a major reason money managers have poured over $900 billion into U.S. funds in the first half of 2021, pushing the dollar to more than three month highs versus the euro.

There is also enough economic data out this week to keep investors busy, from advance 2nd quarter GDP readings in the U.S. to eurozone GDP readings.

In a rare bright spot, bitcoin extended its gains from near $29,000 last week to push back over $36,000 for the first time since June.

Key developments that should provide more direction to markets on Monday:

- Data: German IFO

- Auctions: U.S. bills, Belgium holds auction

- U.S. earnings: Lockheed Martin, Hasbro, logitech, Tesla, Packaging Corp

- European earnings: LVMH, Dior, Michelin, Philips,

- Ryanair nudges up forecast for full-year traffic on strong summer bookings, fares remain well below pre-pandemic levels.

- RBC Bearings in advanced talks to buy the power transmission unit of Swiss industrial giant ABB, Bloomberg reported on Sunday.

Graphic: World COVID cases - https://fingfx.thomsonreuters.com/gfx/mkt/lbvgnroqrpq/COVID.JPG

(Reporting by Saikat Chatterjee; Editing by Dhara Ranasinghe)