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US STOCKS-Wall St to fall at open on euro zone fears

Published 11/30/2010, 09:28 AM
Updated 11/30/2010, 09:32 AM

* Euro hits 10-week low vs USD, dips below $1.30

* Monthly home prices fall more than expected-Case-Shiller

* Futures down: Dow 80 pts; S&P 10 pts, Nasdaq 21 pts (Adds S&P/Case-Shiller data, quote, updates prices)

By Rodrigo Campos

NEW YORK, Nov 30 (Reuters) - U.S. stock indexes were set to open roughly 1 percent lower on Tuesday as worries persisted over euro zone finances and after data showed home prices fell more than twice as fast as expected from the prior month.

The euro slid to 10-week lows against the U.S. dollar, pressuring metals and other commodity prices, after a weekend rescue package for Ireland did little to stem fiscal concerns.

"We are starting to see many warning signs of global contagion, including lower U.S. stock prices," said Zach Pandl, economist at Nomura Securities International in New York.

The latest S&P/Case-Shiller home prices data disappointed investors, as month-to-month prices fell more than expected in September and prices from a year earlier rose more slowly than forecast.

"Although the economy as a whole seems to be improving, the housing market doesn't seem to get out of the doldrums, further decline in hose prices seems likely," Pandl said, adding that U.S. data is "clearly being overshadowed" by developments in Europe.

S&P 500 futures fell 10 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dropped 80 points and Nasdaq 100 futures lost 21 points.

Global investors increased their exposure to equities in November despite weaknesses on many bourses, while U.S. and British fund managers stepped away from crisis-hit euro zone bonds.

Consumer confidence data, expected at 10 a.m. EST (1500 GMT), will be in focus as investors look for more signs the economic recovery advances, following a strong start to the year-end shopping season.

The Conference Board's index of consumer confidence for November is forecast to rise to 52.6 from 50.2 in October.

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