(Bloomberg) — U.S. stocks fell from the highest level in six weeks as oil plunged in New York and investors braced for a raft of corporate earnings. The dollar gained.
The S&P 500 opened lower by more than 1.5% as the drop in West Texas oil accelerated to $12 a barrel. A big part of the crude slump comes as the May futures contract expiring Tuesday forces physical receipt at a time when storage capacity is low. IBM, Halliburton and several regional banks report results Monday.
The Stoxx Europe 600 Index fluctuated before turning lower as energy companies slumped. Shares retreated across much of Asia, though the benchmark in Shanghai rose. The euro, pound and yen all weakened. European bonds dropped as Treasuries advanced.
Investors start the week weighing both the oil crash and signs that Congress is close to a fresh spending package. The pace of earnings season is about to pick up, with almost one-fifth of S&P 500 companies reporting this week. Coca-Cola Co. and Netflix Inc. are among companies due to report in the coming days.
Governments and policy makers are continuing attempts to limit the economic damage of the pandemic. U.S. lawmakers are moving closer to a deal to top up funds for small businesses, China pledged more stimulus as banks lowered borrowing costs and European officials are discussing creating a bad bank for the region, according to the Financial Times.
These are the main moves in markets:
Stocks
The S&P 500 Index fell 1.6% as of 9:31 a.m. New York time.The Stoxx Europe 600 Index decreased 0.5%.The MSCI Asia Pacific Index fell 0.8%.
Currencies
The Bloomberg Dollar Spot Index increased 0.4%.The euro fell 0.2% to $1.0858.The British pound declined 0.6% to $1.2428.The Japanese yen weakened 0.3% to 107.81 per dollar.
Bonds
The yield on 10-year Treasuries dipped two basis points to 0.62%.Germany’s 10-year yield gained one basis point to -0.46%.Britain’s 10-year yield climbed two basis points to 0.322%.
Commodities
West Texas Intermediate crude fell 36.2% to $11.65 a barrel.Gold strengthened 0.2% to $1,686.23 an ounce.
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
U.S. Futures Extend Slide While WTI Oil Craters: Markets Wrap
0 Comments: