U.S. Stock Futures Retreat While Oil Rout Worsens: Markets Wrap

 

 

These are the main moves in markets:

Stocks

• Futures on the S&P 500 slipped 1.9% by 8:21 a.m. New York time.
• The Stoxx Europe 600 Index dropped 2.7%.

Currencies

• The Bloomberg Dollar Spot Index gained 0.5%.
• The euro declined 0.3% to $1.0835.
• The Japanese yen advanced 0.2% to 107.40 per dollar.

Bonds

• The yield on 10-year U.S. Treasuries dropped six basis points to 0.55%.
• Germany’s 10-year yield fell six basis points to -0.5%.

Commodities

• West Texas Intermediate crude May contract was at minus $5.22 a barrel. The June contract was at $15.46.
• Gold dipped 1.5% to $1,671.14 an ounce.

U.S. equity-index futures retreated along with stocks in Europe and Asia on Tuesday as chaos in the oil market continued. Treasuries and the dollar gained as concerns over stability in North Korea added to investor headaches.

Contracts on the three major American gauges all extended a decline as the sell-off in expiring West Texas crude contracts showed signs of spreading. Those for May delivery had plunged at the start of the week, taking crude below zero for the first time in history amid rapidly filling American storage tanks. They remained negative on Tuesday, while the June contract plunged as much as 42%. Energy companies led the decline as the Stoxx Europe 600 index fell for the first time in four days.

U.S. futures had gained earlier in Asia but turned after reports that North Korea’s Kim Jong Un was in critical condition. Shares in the region slumped. The dollar climbed against most major currencies, with the won and ruble tumbling and the yen edging up. Treasuries headed higher with core European bonds.

The risk of instability in Asia adds to a host of market worries, including the gut-wrenching oil rout and concerns about the outlook for the global economy. Investors will be looking to corporate earnings for more insight on the impact of the coronavirus pandemic, with almost one-fifth of S&P 500 companies reporting this week.

Terminal customers can read our TOPLive earnings blog.

Meanwhile, President Donald Trump said he’ll sign an executive order temporarily suspending immigration into America as the country tries to contain the spread of the coronavirus. The news came even amid more signs that the outbreak is slowing in hard-hit areas.

Elsewhere, the kiwi slumped after Reserve Bank of New Zealand Governor Adrian Orr said he was open-minded on the idea of directly monetizing sovereign debt.