Oil prices have already given up gains posted early Monday after OPEC+ reached an unprecedented deal to slash production, while global stocks slumped ahead of a week chock full of reports that will offer a look at how major economies and corporations have been hit by the coronavirus.
US oil futures were little changed below $23 a barrel after gains of 5% evaporated as traders took a closer look at a deal to slash oil production by 9.7 million barrels a day, starting next month. Futures for Brent, the global benchmark, gave up similar gains to trade 0.3% lower at $31.38 a barrel.
The deal is meant to help stabilize the energy market, which has been rocked by a price war and the coronavirus pandemic. But analysts say it doesn’t go far enough, given the collapse in global demand for transport fuels triggered by lockdown measures to contain the virus.
In stocks, Japan’s Nikkei 225 (N225) and South Korea’s Kospi fell 2.3% and 1.9%, respectively. China’s Shanghai Composite lost 0.5%. Markets in Hong Kong and Europe remain closed for the Easter holiday and will reopen on Tuesday.
Meanwhile, Dow (INDU) futures fell 140 points, or 0.6%. S&P 500 (SPX) futures and Nasdaq (COMP) futures were also down about 0.5% each.
Investors are anticipating a busy week.
On Friday, China is scheduled to release its first-quarter GDP figures that will reveal how badly the coronavirus crisis damaged the world’s second largest economy. Many economists are predicting the country’s first contraction in decades.
And many companies will report first quarter earnings this week, which are expected to be dismal because of the coronavirus crisis. Major banks, including JPMorgan Chase (JPM), Wells Fargo (WFC) and Goldman Sachs (GS) are set to report during the first half of this week.
US retail sales and industrial production reports for March are also scheduled to be published on Wednesday, which will offer a further look at the toll coronavirus has taken on the country’s economy.
