Futures market points to positive open for U.S. stocks after big drop Monday

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TORONTO — The U.S. futures market suggested North American stock markets appeared on track to open trading higher this morning, a day after a collapse in oil prices triggered a rout on stock markets.

The S&P/TSX composite index lost more than 1,600 points on Monday to post its largest single-day decrease since 1987.

However, global stock markets rallied in overnight trading as London opened 1.8 per cent higher and Frankfurt advanced one per cent. China’s main stock index rose 1.8 per cent and Tokyo closed up 0.9 per cent.

The plunge on the market came as crude oil prices sank to a four-year low in the steepest one-day decrease since the 1991 Gulf War. The move was ignited after Russia refused over the weekend to roll back production and Saudi Arabia responded by launching a crude price war by vowing to ramp up output.

The drop in oil rattled already jittery markets that had been under pressure due to concerns about the economic impact of the spread of the novel coronavirus that began in China.

The April crude contract was up US$2.18 at US$33.31 per barrel in early trading today.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)