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U.S. futures lower; focus on Greece; Dow Jones down 0.18%

Published 03/12/2012, 08:18 AM
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Investing.com - U.S. stock futures were lower on Monday, as negative economic data from China and Greece’s credit event ruling weighed on market sentiment.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a fall of 0.18%, S&P 500 futures signaled a 0.24% decline, while the Nasdaq 100 futures indicated a 0.24% loss.

Data showed that the trade balance in China plunged USD31.5 billion in February, to leave the largest deficit in at least a decade as imports swamped exports.

Sentiment was also hit after Friday’s ruling by the International Swaps and Derivatives Association, which said that Greece’s debt swap with private creditors constituted a “credit event” that would activate credit-default swaps, designed to protect investors against losses on Greek sovereign debt.

Energy stocks were expected to be active as mining giant Molycorp was set to buy Neo Material Technologies in a USD1.31 billion cash and share deal that will give Molycorp access to Neo's rare earth processing capabilities and patents.

The tech sector was also slated to be in focus after Jefferies Group downgraded its recommendation on Oracle Corp., the second-largest software maker, sending shares down 1.46% in pre-market trade.

Youku.com tumbled 4.44% after China's largest online video company said it will buy second-ranked Tudou Holdings Ltd in an all-stock deal valued at more than USD1 billion.

Also in company news, federal prosecutors nixed a tentative USD1 billion settlement with Johnson & Johnson, holding out for a bigger settlement with the drug maker for alleged improper marketing of its Risperdal schizophrenia drug, according to the Wall Street Journal.

Zoll Medical Corp. was also expected to move after Asahi Kasei Corp. of Japan agreed to buy the maker of resuscitation devices for about USD2.2 billion.

Other stocks in focus included Urban Outfitters, due to release its quarterly results after the closing bell.

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 dropped 0.30%, France’s CAC 40 declined 0.30%, Germany's DAX edged down 0.04%, while Britain's FTSE 100 fell 0.21%.

During the Asian trading session, Hong Kong's Hang Seng Index eased down 0.1%, while Japan’s Nikkei 225 Index slumped 0.4%.

Later in the day, the U.S. was to publish government data on the federal budget balance.


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