US open: Oil price slump weighs on equities

US stocks declined on Tuesday as oil prices continued a downward spiral.

The Dow Jones Industrial Average fell 1.47%, the Nasdaq dropped 1.07% and the S&P 500 slid 1.31% at 1515 GMT.

Oil prices were under pressure as worries about an oversupplied market showed no signs of letting up. West Texas intermediate crude fell 5.1% to $30.08 per barrel and Brent dipped 5.3% to $32.51 per barrel at 1516 GMT.

Adding to concerns about the health of the sector, BP reported a quarterly loss amid the oil price slump.

In economic data, ISM’s New York business confidence index fell to 54.6 from 62 the previous month. It’s otherwise a quiet day of data with no other notable US releases.

The Federal Reserve Bank of Kansas City’s Esther George will be speaking on the US economy at 1800 GMT.

The race to the White House also continues, with Ted Cruz winning the Iowa Republican caucuses with 28% over Donald Trump’s 24%.

In the Democrat race, Hillary Clinton marginally beat Bernie Sanders by only four state delegate equivalents - the closest in Democratic caucus history - and in some cases delegates being awarded based on a coin toss.

The next stop on the campaign trail is New Hampshire, with voting happening on Monday.

In company news, shares in Google’s parent company Alphabet rallied after posting stronger-than-expected fourth quarter earnings after the market closed on Monday of $4.9bn.

Michael Kors jumped after the luxury accessories company reported third-quarter profit and sales that exceeded expectations.

United Parcel Service gained as it reported that earnings in the most recent quarter beat market forecasts, driven by growth in international package delivery.

Exxon Mobil Corporation slumped after posting a fall in fourth quarter earnings and revenue.

The dollar rose 0.30% against the pound, fell 0.33% against the euro and dropped 0.62% versus the yen.