U.S. Stock Futures Extend Losses After Slump in China Market
(Bloomberg) -- U.S. stock-index futures slumped after Chinese stock gauges tumbled along with other global equity markets.
S&P 500 Index futures contracts expiring in March fell 0.5% as of 1:15 p.m. in Tokyo, after dropping as much as 1.1%. Contracts declined 0.4% for the Dow Jones Industrial Average and dropped 1% for the Nasdaq 100.
“Unfortunately for market bulls, we are in for more of the same today, with further news of increased spread in the coronavirus only adding to investor concern,” said Nick Twidale, general manager of IC Markets in Sydney. “For the time being, fixed income will continue to attract flow as will haven trades like gold. The trick will be when, and hopefully it’s soon, that investors can look to find value in the equity market again.”
Japanese shares entered a correction as U.S. equities suffered their biggest losses since 2011. The Topix Index fell as much as 4.3%, most since December 2018. The Shanghai Composite Index and the CSI 300 Index both fell 3.4%.
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