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Stocks Drop With Futures; Oil in Focus After Rout: Markets Wrap
(Bloomberg) -- Stocks in Europe and Asia retreated on Tuesday alongside U.S. equity-index futures as uncertainty about the health of North Korea’s dictator introduced more unease into markets roiled by an unprecedented oil collapse and the coronavirus epidemic.All industry sectors were in the red as the Stoxx Europe 600 index fell for the first time in four days, with energy companies leading the decline. Contracts on the S&P 500 surrendered gains after reports that North Korea’s Kim Jong Un was in critical condition. Benchmarks throughout Asia slumped. The dollar climbed against most major currencies, with the won and ruble tumbling and the yen edging up. Treasuries nudged higher.West Texas oil remained in focus after May contracts expiring Tuesday plunged at the start of the week, taking crude below zero for the first time in history amid rapidly filling American storage tanks. Those futures in New York fluctuated after sinking to as low as minus $40.32 in the previous session. The June contract held above $20. The spread between the two reflects the fear that those who take physical delivery of crude in the near future may not find any outlet or storage for those barrels.Mystery surrounded Kim Jong Un’s health after U.S. and South Korean officials gave differing accounts of the North Korean leader’s condition. The risk of instability in the region adds to a host of market headaches, including the gut-wrenching oil slump 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.“The uncertainty about who succeeds him in North Korea is the great unknown,” said Jeffrey Halley, senior market analyst at Oanda Asia Pacific, conjecturing about a potential worst-case scenario for Kim. “That’s what is making markets nervous.”Elsewhere, the kiwi tumbled after Reserve Bank of New Zealand Governor Adrian Orr said he was open-minded on the idea of directly monetizing sovereign debt. 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.These are the main moves in markets:StocksThe Stoxx Europe 600 Index dropped 1.7% by 10:24 a.m. In London.Futures on the S&P 500 slipped 0.7%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.4%.The euro declined 0.2% to $1.0836.The Japanese yen advanced 0.2% to 107.29 per dollar.BondsThe yield on 10-year U.S. Treasuries dropped one basis point to 0.6%.Germany’s 10-year yield fell two basis points to -0.47%.CommoditiesWest Texas Intermediate crude May contract was at minus $3.43 a barrel. The June contract was at $20.43.Gold was dipped 1% to $1,677.51 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asian-stocks-set-drop-historic-214545151.html?.tsrc=rss
(Bloomberg) -- Stocks in Europe and Asia retreated on Tuesday alongside U.S. equity-index futures as uncertainty about the health of North Korea’s dictator introduced more unease into markets roiled by an unprecedented oil collapse and the coronavirus epidemic.All industry sectors were in the red as the Stoxx Europe 600 index fell for the first time in four days, with energy companies leading the decline. Contracts on the S&P 500 surrendered gains after reports that North Korea’s Kim Jong Un was in critical condition. Benchmarks throughout Asia slumped. The dollar climbed against most major currencies, with the won and ruble tumbling and the yen edging up. Treasuries nudged higher.West Texas oil remained in focus after May contracts expiring Tuesday plunged at the start of the week, taking crude below zero for the first time in history amid rapidly filling American storage tanks. Those futures in New York fluctuated after sinking to as low as minus $40.32 in the previous session. The June contract held above $20. The spread between the two reflects the fear that those who take physical delivery of crude in the near future may not find any outlet or storage for those barrels.Mystery surrounded Kim Jong Un’s health after U.S. and South Korean officials gave differing accounts of the North Korean leader’s condition. The risk of instability in the region adds to a host of market headaches, including the gut-wrenching oil slump 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.“The uncertainty about who succeeds him in North Korea is the great unknown,” said Jeffrey Halley, senior market analyst at Oanda Asia Pacific, conjecturing about a potential worst-case scenario for Kim. “That’s what is making markets nervous.”Elsewhere, the kiwi tumbled after Reserve Bank of New Zealand Governor Adrian Orr said he was open-minded on the idea of directly monetizing sovereign debt. 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.These are the main moves in markets:StocksThe Stoxx Europe 600 Index dropped 1.7% by 10:24 a.m. In London.Futures on the S&P 500 slipped 0.7%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.4%.The euro declined 0.2% to $1.0836.The Japanese yen advanced 0.2% to 107.29 per dollar.BondsThe yield on 10-year U.S. Treasuries dropped one basis point to 0.6%.Germany’s 10-year yield fell two basis points to -0.47%.CommoditiesWest Texas Intermediate crude May contract was at minus $3.43 a barrel. The June contract was at $20.43.Gold was dipped 1% to $1,677.51 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asian-stocks-set-drop-historic-214545151.html?.tsrc=rss
