(Updates at 0835 GMT)

By Harry Robertson and Stella Qiu

LONDON/SYDNEY, Oct 15 (Reuters) -

European shares and U.S. futures were little changed on

Tuesday after Wall Street scaled record highs overnight, while

oil prices dropped on a report that Israel will refrain from

striking Iranian energy targets.

Chinese stocks, meanwhile, tumbled as a media report

that detailed extra government borrowing to boost the economy

appeared to underwhelm investors.

Europe's STOXX 600 index fell less than 0.1% in

early trading after rising on Monday, leaving it within 1% of a

record high reached in September. Oil and gas stocks

fell, but airlines rallied on lower energy prices.

Germany's DAX stock index climbed 0.3% to a

record high but Britain's energy-focused FTSE 100 was

down 0.4%.

Futures for the U.S. S&P 500 index were very

slightly lower after the benchmark Wall Street gauge hit a

record high

overnight, led by chip stocks after a 2.4% jump in AI

darling Nvidia ( NVDA ) and a brisk start to the third-quarter

earnings season with JP Morgan and Wells Fargo ( WFC )

beating expectations.

"New highs beget new highs and price momentum is the

most powerful investment factor," said Ben Laidler, head of

equity strategy at Bradesco BBI.

"Super-sized tech stocks are taking the lead as they get

ready to report the strongest earnings growth of all sectors

again this quarter."

Stock market investors have gained confidence thanks to

U.S. data suggesting the world's biggest economy is heading for

a "soft landing" - with inflation

falling back

to the Federal Reserve's target but growth remaining robust

and the labour market cooling

only slightly

.

U.S. earnings season continues on Tuesday with banks

including Citi, Bank of America ( BAC ) and Goldman Sachs ( GS )

reporting, before a wave of big tech companies next week.

OIL AND CHINA SLUMP

Oil prices fell sharply, declining for a third straight

session, after the Washington Post reported that Israeli Prime

Minister Benjamin Netanyahu told the United States that Israel

is willing to strike Iranian military targets and not nuclear or

oil ones, as it prepares its response to air strikes this month.

Brent crude futures fell 4.2% to $74.19 a

barrel, having dropped 2% overnight, with the market focused on

China's economic slowdown and lower

OPEC demand forecasts

.

China's CSI 300 stock index fell 2.7%, while

Hong Kong's Hang Seng index slid nearly 3.7% as investors

were left wanting more details on Beijing's stimulus plans.

Chinese media reported Beijing may raise an additional 6

trillion yuan ($850 billion) from Treasury bonds over three

years to help bolster a sagging economy.

"Chinese shares have surged since the September

politburo meeting on hopes that major fiscal stimulus may be on

the way. A lack of details so far has disappointed some

investors, so we eye policy announcements for more clarity,"

analysts at BlackRock Investment Institute, led by Wei Li, said

in a research note.

In currency markets, the dollar fell 0.4% to

149.17 yen, pulling back from a 2-1/2-month high of 149.98

overnight.

The euro was roughly flat, languishing near a

10-week trough. The currency has been pulled down by a growing

gap between U.S. and European bond yields - which have stayed

low as markets anticipate a third interest rate cut by the

European Central Bank on Thursday.

U.S. Federal Reserve official Christopher Waller on Monday

called for "more caution" on interest-rate cuts, while Fed

Minneapolis President Neel Kashkari said he also envisages more

modest reductions.

U.S. 10-year Treasury yields were steady at

4.075% on Tuesday after bond markets were closed on Tuesday.