The global equity rout extended on Tuesday as a gauge of world stocks headed for the biggest three-day slide since 2015. U.S. shares were poised for more losses, with a measure of volatility at the highest in nine years. Treasuries slipped and the dollar rose.
As assets decline, volatility is surging, causing pain for investors who had positioned for price swings to remain muted. Trading was halted in some exchange-traded products used to bet against volatility, and the VIX Index was set for the highest close since 2009.
Elsewhere, oil slumped for a third day and metals joined the selloff after gaining on Monday. Bitcoin dropped for a sixth day, at one point trading below $6,000 for the first time since October.
Here are some key events scheduled for this week:
- Monetary policy decisions are due in Russia, India, Brazil, Poland, Romania, the U.K., New Zealand, Serbia, Peru and the Philippines.
- Earnings season continues with reports from Walt Disney, SoftBank, Sanofi, Philip Morris, Total, Tesla, Rio Tinto, L’Oreal and Twitter.
- Dallas Fed President Robert Kaplan and New York Fed President William Dudley are among policy officials due to speak in Frankfurt and New York.
These are the main moves in markets:
- The Stoxx Europe 600 Index decreased 2.3 percent as of 8:13 a.m. New York time, hitting the lowest in more than five months with its seventh consecutive decline and the largest dip in more than 19 months.
- Futures on the S&P 500 Index fell 0.4 percent to the lowest in almost 11 weeks.
- The MSCI Asia Pacific Index sank 3.6 percent to the lowest in almost six weeks on the largest tumble in more than 19 months.
- The U.K.’s FTSE 100 Index dipped 2 percent, reaching the lowest in almost 10 months on its sixth consecutive decline and the biggest decrease in almost 10 months.
- The MSCI Emerging Market Index sank 3.1 percent to the lowest in five weeks on the largest tumble in more than 19 months.
- The Bloomberg Dollar Spot Index increased 0.4 percent to the highest in more than two weeks.
- The euro decreased 0.3 percent to $1.2327, the weakest in two weeks.
- The British pound dipped 0.7 percent to $1.3867, the weakest in more than two weeks.
- The Japanese yen declined 0.4 percent to 109.50 per dollar.
- South Africa’s rand jumped 0.6 percent to 12.0541 per dollar.
- The MSCI Emerging Markets Currency Index fell 0.2 percent to the lowest in two weeks.
- The yield on 10-year Treasuries climbed two basis points to 2.73 percent.
- Germany’s 10-year yield declined five basis points to 0.69 percent, the lowest in a week on the largest drop in more than two months.
- Britain’s 10-year yield fell four basis points to 1.514 percent, the biggest fall in almost five weeks.
- West Texas Intermediate crude dipped 1.3 percent to $63.34 a barrel, the lowest in more than two weeks.
- Gold fell 0.4 percent to $1,334.96 an ounce.
Read the Original Article on bloomberg.com