Fear over the accelerating bond market rout is causing a collapse of European stocks on Tuesday and feeding through to a considerably lower US market open. German bunds yields are rising faster than US treasuries and closing the yield advantage of US debt over European debt. US dollar-denominated assets are now becoming relatively less appealing than the equivalent European assets. This unwinding of the yield differential between treasuries and bunds is driving EUR/USD higher which in turn is causing a drop in the German DAX stock index. German stocks tend to be more export-orientated and are more sensitive to a move in the euro, which up until recently had been falling because of quantitative easing by the ECB. US stocks are lower in sympathy with those in Europe. The potential benefits of a weaker dollar for US-based international conglomerate exports mean the declines could be relatively smaller in the US stock markets than Europe. Clothing retailer Gap is expected to open lower after reporting a decline in net sales of almost 10% year-over year in its quarterly earnings. Futures suggest the: S&P 500 will open 19 points lower at 2,086 with the Dow Jones expected to open 154 points lower at 17,951 and the Nasdaq 100 41 points lower at 4,397. CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.