US equity futures drop with stocks as haven bid returns

Bloomberg

US equity futures fell with stocks amid rising concern that Europe will lose access to Russian gas, sending the region into a recession that could have global repercussions.
Contracts on the Nasdaq 100 and the S&P 500 turned lower, reversing earlier gains, along with the Stoxx 600 Index as the European Union (EU) laid out preparations for a scenario where Russia halts gas exports to retaliate against sanctions over its invasion of Ukraine.
The fragile sentiment sparked a reversal in haven assets, as Treasuries rose and a gauge of the dollar steadied after three days of declines. 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 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.
A tentative market recovery in June follows 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.
In the premarket, Netflix added about 6% after it reported better-than-feared earnings and said it expects to return to subscriber growth before the end of the year.
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Futures on the S&P 500 fell 0.2% in New York. Futures on the Nasdaq 100 fell 0.2%. Futures on the Dow Jones Industrial Average fell 0.2%. The Stoxx Europe 600 fell 0.2%. The MSCI World index rose 0.1%.
The Bloomberg Dollar Spot Index was little changed. The euro fell 0.2% to $1.0207
The British pound was little changed at $1.1988. The Japanese yen was little changed at 138.10 per dollar.
The yield on 10-year Treasuries declined six basis points to 2.96%.
Germany’s 10-year yield declined seven basis points to 1.20%. Britain’s 10-year yield declined 11 basis points to 2.07%.
West Texas Intermediate crude fell 1.9% to $102.21 a barrel. Gold futures fell 0.2% to $1,723.80 an ounce.