US pre-open: Stocks set for low start as WTI closes on levels of 2003

US equity futures are pointing to moderately big drops on Wall Street as investors parse the headlines around proposed fiscal stimulus packages in the States, even as they keep a close eye on the reaction in government bond markets.

"Enormous stimulus packages from the UK and US governments managed just a single day bounce in equity markets, with those gains having already been wiped out in Europe," said Oanda senior market analyst Craig Erlam.

"The response from the various authorities is not going to prevent job losses or companies going bust but they will help significantly reduce the number of casualties. For that reason, the enormous measures announced are extremely encouraging, but as far as investors are concerned right now, it's too early to get excited."

As of 1255 GMT, S&P 500 futures were down 92.0 points at 2,393.5, alongside a 821 point fall for those tracking the Dow Jones Industrials to 20,039.0.

In parallel, the yield on the benchmark 10-year US government bond was 10 basis points higher at 1.10% following a near 30 basis point jump during the previous session.

Front month West Texas Intermediate crude oil futures meanwhile were down 9.5% to $24.60 a barrel on the ICE.

Hence oil major Conoco Phillips's announcement that it would reduce its capital spending budget for 2020 by 10% to $700m, in order to adjust to the steep drop in energy quotes - chiefly through a reduction in Alaskan drilling.

Market watchers were also keeping tabs on the dash for US dollars, which had sent Sterling back down to its post-Brexit vote lows of 2016.

On a related note, Steen Jakobsen at Saxo was pointing out to clients the upcoming end of the fiscal year in Japan on 30 march, with that country's investors being the world's biggest "credit and carry" buyers.

According to the US Department of Commerce, housing starts fell at a 1.5% month-on-month pace in February to reach an annualised clip of 1.624m (consensus: 1.599m).

Permits to start building, typically a closely-followed lead indicator, dropped 5.5% on the month to reach 1.464m (consensus: 1.5m).