US open: Stocks decline as oil prices slide

US stocks declined on Monday as oil prices remained under pressure.

The Dow Jones Industrial Average fell 0.46%, the Nasdaq declined 0.44% and the S&P 500 slipped 0.52% at 1454 GMT.

Oil prices were in the red as HSBC cut its oil price forecast for the rest of the year to around $45 per barrel, compared to the $60 it had previously expected. The bank said the market was oversupplied by an estimated 2m barrels a day in 2015.

At 1457 GMT, West Texas Intermediate fell 3.5% to $31.09 per barrel and Brent crude dropped 2.8% to $31.29 per barrel.

Meanwhile, investors are eagerly awaiting the Federal Reserve’s latest decision on interest rates on Wednesday. The central bank is widely expected to keep rates unchanged 0.50% following a 25 basis point rise last month, the first hike in almost a decade. The focus will be on the press statement released alongside the rate decision to see whether the Fed hints at the timing of the next rate increase.

“We expect the Fed to be dovish by communicating implicitly that it will skip March and remain patient in the current environment,” according to Danske Bank.

“The main reasons are the weak US data, depressed markets and subdued core inflation.”

Elsewhere the market is also gearing up for the Bank of Japan’s policy decision on Friday.

BoJ Governor Haruhiko Kuroda fuelled speculation of further stimulus measures on Saturday at Davos as he said that the central bank “won’t hesitate adjusting policy, including easing policy, if necessary to achieve our 2% price target”.

In company news, McDonald’s Corp gained after reporting fourth quarter sales and profit that beat expectations.

Shares in Tyco International surged after confirmation that it will merge with rival Johnson Controls.

Twitter edged lower after chief executive Jack Dorsey confirmed that four high-profile executives will leave the social media giant, with two other executives picking up extra responsibilities.

The dollar fell 0.03% against the pound, dropped 0.35% against the euro and slid 0.16% against the yen.