(Bloomberg) — US equity futures fell with stocks Wednesday amid rising concern that Europe will lose access to Russian gas, sending the region into a recession that could have global repercussions.
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Contracts on the Nasdaq 100 and the S&P 500 flipped to losses from gains along with the Stoxx 600 Index. In the premarket, Netflix added about 6% after it reported better-than-feared earnings late on Tuesday and said it expects to return to subscriber growth before the end of the year.
The fragile sentiment sparked a reversal in haven assets, as Treasuries rose with the dollar. The yield on the 10-year benchmark fell back below 3%.
The risk of a global downturn and Europe’s energy crisis doused optimism about the US earnings season and confidence the Federal Reserve will avoid very aggressive monetary tightening.
The European Union is preparing for a scenario in which Russia halts gas exports to retaliate against sanctions over its invasion of Ukraine. The EU proposed that the bloc cut its natural gas consumption by 15% over the next eight months to ensure that any full Russian cutoff of natural gas supplies won’t disrupt industries over the winter.
Read more: EU Proposes 15% Cut in Gas Consumption on Russian Supply Concern
June’s tentative recovery comes after the worst combined first-half losses on stocks and bonds around the world on record.
West Texas Intermediate crude oil slipped below $103 a barrel. Bitcoin hovered above $23,000 after climbing out of a one-month-old trading range.
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Key events to watch this week:
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Earnings this week include Tesla
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Bank of Japan, European Central Bank rate decisions. Thursday
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Nord Stream 1 pipeline scheduled to reopen following maintenance. Thursday
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