Stocks See Erratic Trading Due to High Nerves – Europe Market Wrap

Stocks fluctuated in early trade as investors braced for more turbulence following Monday’s massive sell-off.

US market futures pared gains, while European stocks fell. Treasuries fell, with the 10-year yield on track for its first increase in over two weeks. Traders reduced their expectations that the Fed would intervene to assist markets with early interest rate decreases.

To add to the general market anxiety, investors are hurrying to protect their assets from a severe market crash. And the VIX index remains at its highest level in over two years.

In commodities, oil remained near a seven-month low as a production halt at Libya’s largest field refocused attention on the Middle East. Gold steadied after being dragged into Monday’s worldwide selloff, when some traders reduced holdings to cover probable margin calls.