US open: Stocks drop as oil prices slide

US stocks declined on Wednesday as oil prices fell after government data showed an increase in weekly US crude inventories.

At 1510 GMT, the Dow Jones Industrial Average shed 0.12%, the S&P 500 lost 0.29% and the Nasdaq dropped 0.63%.

Oil prices were under the cosh as the Energy Information Administration reported US crude stocks rose by 9.4 million barrels in the previous week to a record total of 532.5 million barrels.

West Texas Intermediate crude fell 2.7% to $40.34 per barrel and Brent slid 2.3% to $40.85 per barrel at 1515 GMT.

In economic data, the Commerce Department revealed US new home sales rose 2% to 512,000 units in February from a month ago, missing estimates for a 3.2% rise.

The Mortgage Bankers’ Association showed mortgage applications fell 3.3% in the week to 18 March.

Elsewhere, European stocks struggled to keep up the recovery after explosions in Brussels hurt sentiment on Tuesday. Equities slumped after twin explosions at Zaventem airport and a metro station on Tuesday morning left about 34 people dead and 250 wounded. Extremists group ISIL claimed responsibility for the attacks shortly after.

Stocks in the bloc had picked up in Wednesday morning trade but reversed gains in the afternoon amid a lack of economic data to drive the market.

In Asia, the president of the Asian Development Bank said on Wednesday that China’s economy is unlikely to suffer a hard landing as there is room for fiscal and monetary stimulus to boost growth.

"There won't be a hard landing," Takehiko Nakao, a former Japanese vice finance minister for international affairs, told a news conference.

The lender has forecast China’s economy will grow 6.7% this year, but Takehiko suggested that the estimate might be modified lowered later this month.

China's government is targeting growth of 6.5% to 7% this year after 6.9% expansion in 2015.

Company-wise, Emerald Oil’s trading was halted after the oil and gas exploration company filed for chapter 11 bankruptcy protection as it has failed to manage lower oil prices.

Nike’s shares slumped after reporting third quarter revenue that missed analysts’ expectations.

SunEdison was in the red as the company faced questions about its fiscal amid reports that it could be heading for bankruptcy.

Krispy Kreme dipped as the doughnut maker reported holiday quarter revenue growth that trailed forecasts.

In currencies, the dollar rose 0.64% against the pound, increased 0.33% versus the euro and gained 0.30% against the yen.