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U.S. futures lower, EU summit in focus; Dow Jones down 0.51%

Published 01/30/2012, 06:50 AM
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Investing.com - U.S. stock futures pointed to a lower open on Monday, as markets eyed a European Union summit later in the day, while talks between Greece and its private creditors on a debt swap deal continued. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a fall of 0.51%, S&P 500 futures signaled a 0.52% decline, while the Nasdaq 100 futures indicated a 0.54% loss.

EU leaders were expected to finalize discussions on a pact aimed at enforcing deficit control measures in the region and to sign off on a EUR500 billion permanent rescue fund to be set up this year.

Meanwhile, sentiment was also hit by delays in negotiations between Greece and its private creditors on a debt restructuring plan.

An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.

Financial stocks were expected to be active as Bank of America is shaking up the leadership of its investment bank while it looks to find its footing in a difficult market environment.

Meanwhile, Citigroup's chairman, Richard Parsons, is considering giving up the position to focus on other interests, according to the Wall Street Journal. Shares in Bank of America and Citigroup were down 2.61% and 1% in pre-market trade.

Standard & Poor's took negative ratings actions on three midsize brokerage firms on Friday, saying the European financial crisis could hurt their profitability for a prolonged period of time.

Elsewhere, electrical components maker Thomas & Betts was also set to be in focus after Swiss engineering group ABB said earlier Monday it had agreed to buy the U.S. company for USD3.9 billion in cash to broaden its inroads into the world's largest market for low-voltage products.

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 0.57%, France’s CAC 40 plunged 0.88%, Germany's DAX dropped 0.58%, while Britain's FTSE 100 declined 0.80%.

During the Asian trading session, Hong Kong's Hang Seng Index tumbled 1.3%, while Japan’s Nikkei 225 Index fell 0.54%.

Later Monday, the U.S. was to publish government data on personal spending and the consumer price index.


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