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European stocks traded lower on Tuesday as traders on the Continent got their first opportunity to react to the shock of negative oil prices.
After three straight advances, the Stoxx Europe 600 SXXP, -1.61% lost 1.9%.
The German DAX DAX, -1.96% , French CAC 40 PX1, -2.02% and U.K. FTSE 100 UKX, -1.46% each fell.
Futures on the Dow Jones Industrial Average YM00, -0.77% fell 241 points.
After European stock markets closed on Monday, light sweet crude for May delivery CLK20, +97.98% lost $55.90 per barrel to -$37.63, the first time that oil prices have ever traded negatively, reflecting a scramble for storage amid deteriorating world demand.
The international contract, Brent for June delivery BRN00, -14.15% , dropped nearly 10% to $23.05 a barrel.
The big European-headquartered oil producers all traded lower on Tuesday, with BP BP, -3.09% , Royal Dutch Shell RDSA, -2.39% and Total FP, -3.66% all retreating by around 4%.
“Yesterday was a wake-up call and investors would be remiss to ignore that low oil means lower inflation, higher defaults, lower growth and more political instability as less petrodollars circulate in the system,” said Gregory Perdon, co-chief investment officer at Arbuthnot Latham.
The broader focus is on the coronavirus spread that has shuttered much of the world economy.
Germany Chancellor Angela Merkel, who reopened smaller shops on Monday, said that it would take at least 14 days to assess the impact of the easing measures and that it will not move too quickly with the next step.
SAP SAP, -1.89% fell 2% after announcing co-CEO Jennifer Morgan will be leaving the software giant this month, leaving Christian Klein in control. SAP said a significant percentage of new business was postponed in March, as first-quarter adjusted operating profit edged 1% higher. Its adjusted measure of revenue rose 7%, with cloud revenue jumping 27%. SAP had cut its financial outlook earlier in the month.
Lab equipment supplier Sartorius SRT3, +10.86% was an advancer, rising 6% after hiking its sales forecast for the year, as it plans to close the acquisition of Danaher’s DHR, -0.44% life-science businesses in weeks and reported 17% sales growth in the first quarter.
The London Stock Exchange LSE, +0.92% also rose, gaining 3% as the exchange operator reported a 13% rise in total income for the first quarter.
