March 29, 2024

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U.S. Stock Futures Drop While Oil Slides Below $15: Markets Wrap

(Bloomberg) — U.S. equity futures fell and European stocks fluctuated as investors prepare for a big week of corporate earnings and weigh tentative signs coronavirus infection rates are decelerating in some major economies. The dollar strengthened.

Contracts on the S&P 500 slipped after U.S. stocks posted the first back-to-back weekly gain since early February. The Stoxx Europe 600 Index opened in the green but swung between gains and losses, dragged down by energy companies as the price of oil took another leg down. West Texas Intermediate crude plunged below $15 a barrel to the lowest level in 21 years.

Shares retreated across much of Asia, though the benchmark in Shanghai rose. The Bloomberg Dollar Spot Index recouped some of its declines from Friday, while Treasuries edged higher. The euro weakened alongside the pound and the yen.

Earnings season picks up in earnest this week, with major companies including International Business Machines Corp., Coca-Cola Co. and Netflix Inc. among those on the calendar. Goldman Sachs Group Inc. strategists anticipate that American companies will pare back cash spending by a record this year.

Meanwhile, the pandemic is showing signs of easing in some locations. New York Governor Andrew Cuomo said the state may be past the high point of deaths. Fewer daily deaths were reported in Germany, Italy, Spain and the U.K.

Governments and policy makers are continuing to attempt to limit the economic damage of the outbreak. In the U.S., House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin were optimistic about reaching a deal to top up funds in a loan program aimed at helping small businesses stay afloat. The Financial Times reported European officials are discussing creating a bad bank for the region. Chinese banks lowered borrowing costs and the government promised to sell another 1 trillion yuan ($141.3 billion) in bonds to pay for stimulus spending.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index dipped 0.9% as of 8:19 a.m. London time.The Stoxx Europe 600 Index slipped 0.1%.The MSCI Asia Pacific Index fell 0.8%.

Currencies

The Bloomberg Dollar Spot Index increased 0.3%.The euro fell 0.2% to $1.0856.The British pound declined 0.4% to $1.2448.The Japanese yen decreased 0.3% to 107.82 per dollar.

Bonds

The yield on 10-year Treasuries dipped one basis point to 0.63%.Germany’s 10-year yield was unchanged at -0.47%.Britain’s 10-year yield increased one basis point to 0.315%.

Commodities

Gold fell 0.4% to $1,676.10 an ounce.West Texas Intermediate crude declined 18% to $14.99 a barrel.

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