Asia Pacific markets are looking at another turbulent trading session today. European and US stocks dropped heavily on Friday night, although a better than forecast increase in non-farm payroll numbers reduced losses. Crude oil slumped 10% after Russia made it clear the supply reduction agreement with the OPEC+ group is over.

US stock futures are trading significantly lower this morning after crude oil futures dropped more than 20% at the opening of the US Sunday night session. Russia’s hard line at a Friday meeting of OPEC+ oil producing nations means it will no longer observe supply restraint to keep crude oil prices higher. The break down in supply agreements comes as the Covid-19 virus has many analysts revising demand forecasts downward, and the double-hit is playing havoc with prices.

The US dollar is slumping as forex traders favour the Euro and Japanese yen. USD/JPY breached a three-year low at near 105 this morning, and the pair may test the 100 level over the coming weeks.

Japanese trade and GDP is the only macro data released today. The backward looking nature of the reports could see regional trading ignore the results, good or bad. The growing fears over the impact of virus containment measures and the slump in crude prices may see stocks outstrip falls foreshadowed on Saturday morning.