Overnight Update: US stocks reversed opening gains and deepened losses after home sales data showed a larger drop in December than anticipated

Overnight Update: US stocks reversed opening gains and deepened losses after home sales data showed a larger drop in December than anticipated. A global rush to sell equities outweighed an optimistic forecast from Caterpillar. Treasury prices swung lower after a lackluster housing indicator. The USD recovered from a nearly two-month low against the yen, as the greenback remained vulnerable to major rivals amid heightened worries about risk in emerging markets. Shares of BG led the U.K.'s FTSE 100 index to its lowest closing level in more than five weeks after the energy giant issued a profit warning and cut its output forecasts. European stock markets moved sharply lower after weaker-than-expected U.S. home-sales data London BHP down 0.64%. Rio down 0.10%. New York BHP up 0.56%. Rio up 1.80% Base metal traded mixed.