Wall St futures, oil plunge, markets bay for US rate cuts

By Wayne Cole

SYDNEY (Reuters) -Asian markets faced much turmoil connected Monday arsenic fears of a planetary commercialized warfare saw Wall Street futures plunge, portion investors wagered the mounting hazard of recession could spot U.S. rates chopped arsenic aboriginal arsenic May.

S&P 500 futures slid 4.79% successful volatile trade, portion Nasdaq futures dived 5.78%, adding to past week's astir $6 trillion successful marketplace losses. [.N]

Nikkei futures slid 3.9% to 31,105, pointing to a driblet of up to 3,000 points for the currency scale that closed astatine 33,780 connected Friday.

The gloomier outlook for planetary maturation kept lipid prices nether dense pressure, pursuing steep losses past week. [O/R]

Brent fell $2.12 to $63.46 a barrel, portion U.S. crude dived $2.05 to $59.94 per barrel.

The carnage came arsenic White House officials showed nary motion of backing distant from their tariff plans, and China declared the markets had spoken connected their retaliation done levies connected U.S. goods.

President Donald Trump told reporters that markets would person to instrumentality their medicine and helium would not bash a woody with China until the U.S. commercialized shortage was sorted out.

The formation to harmless havens saw Treasury futures surge a afloat point, a precise uncommon determination for Asian trade, portion Fed money futures jumped to terms successful an other quarter-point complaint chopped from the Federal Reserve this year.

Markets swung to connote astir a 70% accidental the Fed could chopped arsenic soon arsenic May, adjacent though Chair Jerome Powell connected Friday said the cardinal slope was successful nary hurry connected rates.

That dovish crook saw the dollar gaffe different 1% connected the safe-haven Japanese yen to 145.38 yen, portion the euro held steadfast astatine $1.0987.

"The size and disruptive interaction of U.S. commercialized policies, if sustained, would beryllium capable to extremity a inactive steadfast U.S. and planetary enlargement into recession," said Bruce Kasman, caput of economics astatine JPMorgan, putting the hazard of a downturn astatine 60%.

"We proceed to expect a archetypal Fed easing successful June," helium added. "However, we present deliberation the Committee cuts astatine each gathering done January, bringing the apical of the funds complaint people scope down to 3.0%."

NEVER MIND INFLATION

Investors were besides wagering the imminent menace of recession would outweigh the apt upward shove to ostentation from tariffs.

U.S. user terms figures retired aboriginal this week are expected to amusement different emergence of 0.3% for March, but analysts presume it is conscionable a substance of clip earlier tariffs propulsion prices sharply higher, for everything from nutrient to cars.

Rising costs volition besides enactment unit connected institution nett margins, conscionable arsenic the net play gets underway with immoderate of the large banks owed connected Friday. Around 87% of U.S. companies volition study betwixt April 11 and May 9.