U.S. index futures turned lower alongside European stocks on Monday as equity markets struggled to end the worst rout since the financial crisis amid the ongoing spread of the coronavirus. Bonds extended a rally and oil advanced. Contracts on the S&P 500 Index had earlier advanced as much as 2.4%, but the move gradually faded through the European morning as more virus cases were reported and the OECD cut its global growth forecast. The Stoxx Europe 600 Index also reversed a big early jump as the share gauge in Italy, the region’s epicenter for virus cases, tumbled.
The attempt at a bounce earlier followed a rare statement on Friday from the Federal Reserve that opened the door to a rate cut based on the “evolving risks” posed by the outbreak. Central banks in Japan and the U.K. followed suit with supportive messages. Money market traders expect the European Central Bank to ease rates by 10 basis points in April. Most core European bonds gained, tracking Treasuries as they rallied for an eighth day. The dollar slipped against the euro and most major currencies.