Investing.com – U.S. stock futures pointed to a broadly lower open on Monday, as a lack of progress over raising the U.S. debt ceiling and simmering concerns over the euro zone’s sovereign debt crisis weighed on market sentiment.
Dow Jones Industrial Average futures pointed to a loss of 0.7%, the S&P 500 futures declined 0.68%, while the Nasdaq 100 futures slumped 0.75%.
U.S. President Barack Obama said over the weekend that the U.S. government was “running out of time” in regards to negotiations over lifting the country’s USD14.3 trillion debt ceiling before an August 2 deadline.
Former U.S. Treasury Secretary Larry Summers said that a U.S. debt default would cause panic throughout the financial system and long-term uncertainty.
Ratings agencies Moody’s and Standard & Poor’s both warned last week that a failure to raise the debt limit in time would result in a downgrade in the credit rating of the world’s largest economy.
Meanwhile, in the euro zone, Spanish government bond yields rose to a euro-lifetime high of 6.31%, approaching the 7% mark that prompted peripheral euro zone nations, Greece, Portugal and Ireland to seek bailouts.
Yields on Italian bonds also climbed to a record high of 6.02%, while yields on two-year Greek debt soared to a euro-era record of 34.37%.
Shares in the financial sector performed poorly in pre-market trade, tracking their European counterparts lower. Citigroup shares slumped 1.1%, Morgan Stanley saw shares fall 1.15%, while U.S.-listed shares of Deutsche Bank tumbled 3.4%.
In earnings news, toymaker Hasbro saw shares drop 1.85% after reporting lower-than-expected second quarter earnings.
On the upside, shares in oilfield service provider Halliburton climbed 1.25% after reporting a 54% increase in second quarter net income. Revenue in the quarter rose 35% to USD5.94 billion, above expectations for revenue of USD5.63 billion.
Other notable earnings slated for Monday include financial service provider Charles Schwab, hotel operator Wynn Resorts and IBM, which was due to release earnings after Monday’s closing bell.
Across the Atlantic, European stock markets were broadly lower as shares in the financial sector came under selling pressure after European bank stress tests failed to ease concerns over the health of the region’s banking sector.
The EURO STOXX 50 tumbled 1.35%, France’s CAC 40 sank 1.4%, Germany's DAX slumped 1.1%, while Britain's FTSE 100 declined 1%.
During the Asian trading session, Hong Kong’s Hang Seng Index edged 0.5% lower, while markets in Japan remained closed for a public holiday.
Later in the day, the U.S. was to publish a government report on the balance of domestic and foreign investments.
Dow Jones Industrial Average futures pointed to a loss of 0.7%, the S&P 500 futures declined 0.68%, while the Nasdaq 100 futures slumped 0.75%.
U.S. President Barack Obama said over the weekend that the U.S. government was “running out of time” in regards to negotiations over lifting the country’s USD14.3 trillion debt ceiling before an August 2 deadline.
Former U.S. Treasury Secretary Larry Summers said that a U.S. debt default would cause panic throughout the financial system and long-term uncertainty.
Ratings agencies Moody’s and Standard & Poor’s both warned last week that a failure to raise the debt limit in time would result in a downgrade in the credit rating of the world’s largest economy.
Meanwhile, in the euro zone, Spanish government bond yields rose to a euro-lifetime high of 6.31%, approaching the 7% mark that prompted peripheral euro zone nations, Greece, Portugal and Ireland to seek bailouts.
Yields on Italian bonds also climbed to a record high of 6.02%, while yields on two-year Greek debt soared to a euro-era record of 34.37%.
Shares in the financial sector performed poorly in pre-market trade, tracking their European counterparts lower. Citigroup shares slumped 1.1%, Morgan Stanley saw shares fall 1.15%, while U.S.-listed shares of Deutsche Bank tumbled 3.4%.
In earnings news, toymaker Hasbro saw shares drop 1.85% after reporting lower-than-expected second quarter earnings.
On the upside, shares in oilfield service provider Halliburton climbed 1.25% after reporting a 54% increase in second quarter net income. Revenue in the quarter rose 35% to USD5.94 billion, above expectations for revenue of USD5.63 billion.
Other notable earnings slated for Monday include financial service provider Charles Schwab, hotel operator Wynn Resorts and IBM, which was due to release earnings after Monday’s closing bell.
Across the Atlantic, European stock markets were broadly lower as shares in the financial sector came under selling pressure after European bank stress tests failed to ease concerns over the health of the region’s banking sector.
The EURO STOXX 50 tumbled 1.35%, France’s CAC 40 sank 1.4%, Germany's DAX slumped 1.1%, while Britain's FTSE 100 declined 1%.
During the Asian trading session, Hong Kong’s Hang Seng Index edged 0.5% lower, while markets in Japan remained closed for a public holiday.
Later in the day, the U.S. was to publish a government report on the balance of domestic and foreign investments.