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· U.S. stock futures sink by 5% down limit after crude rout

U.S. stock futures plunged 5% to hit their daily down limit and halt trading after the biggest single-day loss in oil futures in almost 30 years on Sunday exacerbated fears of a credit crunch across financial markets.

Saudi Arabia’s plans to hike crude production and slash its official selling price came after Russia on Friday balked at steep production cuts proposed by the Organization of the Petroleum Exporting Countries to stabilize prices hit by economic fallout from the coronavirus.

The decline in S&P 500 futures contracts was compounded by fears the impact from the fast-spreading coronavirus will intensify, leading to a U.S. recession and sharp tightening in credit markets.

The depth of the recent sell-off in both equities and high-yield bonds reflected uncertainty about the virus’ impact, but also indicated confidence that markets would eventually stabilize and resume their upward trend, said David Joy, chief market strategist at Ameriprise Financial in Boston.

The plunge in stock futures suggests confidence is being fractured and the impact of the coronavirus no longer is manageable, he said.

After-hours trading in the futures contract for the benchmark S&P 500 stock index EScv1 saw it slip to its 5% down limit. The decline indicates how much the S&P 500 might fall when trading begins on Monday.

· Global share markets tumbled on Monday as panicked investors fled headlong to bonds to hedge the economic trauma of the coronavirus, and oil plunged more than 30% after Saudi Arabia opened the taps in a price war with Russia.

Saudi Arabia had stunned markets with plans to raise its production significantly after the collapse of OPEC’s supply cut agreement with Russia, a grab for market share reminiscent of a drive in 2014 that sent prices down by about two thirds.[O/R]

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost 3.9% in its worst day since late 2015, while Shanghai blue chips .CSI300 dropped 2.8%.

· China stocks slumped on Monday, as fears over the economic impact of the global coronavirus epidemic were exacerbated by a crash in oil prices that battered financial markets around the world.

The CSI300 index skidded 3.4% to close at 3,997.13 points, while the Shanghai Composite Index slid 3.0%, to 2,943.29 points.

Sectors fell across the board, dragged down by materials and consumer firms.

For the day, foreign investors sold A-shares worth more than 12 billion yuan ($1.73 billion) via the Stock Connect linking mainland and Hong Kong amid a rush to buy less risky assets.

Still, losses were still limited compared to other markets, helped by the number of new virus cases in China falling and expectations of further Beijing policy support to underpin the world’s second-largest economy.

· European markets opened sharply lower at the start of trade Monday as global investors brace for the the spread of the coronavirus and oil prices fall after the collapse of OPEC talks.

The pan-European Stoxx 600 dropped 3% at the start of trading, retail stocks shedding 3.6% to lead losses as all sectors and major bourses entered negative territory.