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Futures are falling

Akin Oyedele   

Futures are falling
Stock Market2 min read

After the biggest two-day drop for US stocks since the dip in August, futures are lower again.

Near 7:34 a.m. ET, Dow futures were down about 130 points, S&P 500 futures were down 15 points, and Nasdaq futures were down 26 points.

The big story in global stock markets overnight came from Japan, where the benchmark Nikkei index fell more than 5%, its worst decline since June 2013. The index is now down more than 10% since the Bank of Japan decided to adopt negative interest rates.

The buying of government bonds amid the angst in the stock market pushed the 10-year yield below 0%. Dave Lutz at JonesTrading noted in morning commentary that this was the first time a G7 nation's 10-year yield went negative.

Across global markets, we're seeing a continuation of the selling from yesterday, with major indexes across Europe down by at least 1%. Chinese and Hong Kong stock markets remain closed for the new year.

Deutsche Bank shares were down nearly 8% after falling to a record low yesterday, amid reports that it could struggle to make its bond payments later this year.

On Monday, there were three markedly "risk-off" moves in markets, as traders sold stocks, and assets that benefit during uneasy periods rallied. Gold surged to the highest level since June and crossed $1,200 an ounce. The ten-year treasury yield dropped below 1.8%, and the yen strengthened against the dollar.

Early Tuesday, gold had given back some of its gains, down just about 0.5%, or $5.20 an ounce to $1,192,80. The ten-year yield was higher.

More to come ...

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