· Wall Street drops as oil traders cannot give away U.S. crude
Wall Street tumbled on Monday after U.S. crude futures turned negative for the first time ever, with traders forced to pay to unload crude as the May contract expired during a global economic slump unleashed by the coronavirus outbreak.
The Dow Jones Industrial Average .DJI dropped 2.44% to end at 23,650.44 points, while the S&P 500 .SPX lost 1.79% to 2,823.16.
The Nasdaq Composite .IXIC dropped 1.03% to 8,560.73.
The S&P energy index .SPNY tumbled 3.7% after the front-month May U.S. West Texas Intermediate (WTI) contract CLc1 actually turned negative, with sellers offering $37.63 a barrel to any traders willing to take it.
With billions of people staying home around the world due to the coronavirus, physical demand for crude has dried up.
· Dow futures rise more than 100 points as oil prices stabilize
Stock futures bounced in overnight trading on Monday as oil prices bounced off their lows following an unprecedented wipeout.
Futures on the Dow Jones Industrial Average rose 120 points. S&P 500 futures added 0.3%.
The gains came as the more actively-traded June oil contract rebounded by 2%. The May contract, which triggered Monday’s stock sell-off with a bizarre move below zero into negative prices, remained in negative territory.
· Asia stocks dip as US crude bounces back to positive territory
Stocks in Asia declined in Tuesday morning trade as U.S. crude futures bounced back into positive territory.
In Japan, the Nikkei 225 fell 0.97% as shares of Familymart dropped more than 2%. The Topix index also shed 0.68%.
In South Korea, the Kospi slipped 0.4% while the Kosdaq index added 0.15%.
Meanwhile, stocks in Australia slipped, with the S&P/ASX 200 0.14% lower. The Reserve Bank of Australia’s minutes for its April meeting are set to be out around 9:30 a.m. HK/SIN.
Overall, the MSCI Asia ex-Japan index traded 0.31% lower.
Reference: CNBC, Reuters
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