U.S. Futures, Europe Stocks Drop After Asia Slump: Markets Wrap

• U.S equity futures slipped on Tuesday, pointing to declines after the long weekend as investors grappled with worries about a deadly virus in China that sparked earlier losses across Asia and Europe. Treasuries rose.
• Contracts for all three of the main American gauges were firmly in the red after the Asia sell-off, triggered by reports that the respiratory virus was spreading. Shares in Hong Kong were hardest hit, as the news coincided with a credit rating downgrade and a top official calling for new security legislation.
• The Stoxx Europe 600 Index recovered from the worst of its drop, though the gauge remained on course for a second day falling. Luxury stocks suffered on worries the virus will disrupt spending during a key Chinese holiday period; banks also retreated after UBS Group AG missed key profitability and cost targets.
• The broader risk-off mood helped spur some traditional haven assets, and the yen and Treasuries advanced even as gold fell. The Chinese and South Korean currencies sank. The pound turned higher after better-than-expected U.K. employment figures.

(Source: Bloomberg)