Investing.com – U.S. stock futures pointed to a sharply lower open on Monday, tracking steep losses in global equities as mounting concerns over a potential Greek debt default prompted investors to dump riskier assets.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a loss of 1.5%, the S&P 500 futures indicated a decline of 1.55%, while the Nasdaq 100 futures pointed to a 1.45% drop.
German media reported over the weekend that Germany’s Finance Ministry was studying the impact of a possible Greek default, including a scenario in which the debt-laden country exited the euro zone and reintroduced the drachma.
Adding to investors’ nervousness over the region’s debt crisis, the Wall Street Journal reported that major French banks could be downgraded by Moody's Investors Service this week because of their exposure to Greek sovereign debt.
Shares in the financial sector performed poorly in pre-market trade, tracking their global counterparts lower. Bank of America shares dropped 4%, shares in Citigroup retreated 3.9%, while U.S.-listed shares of National Bank of Greece tumbled 9.65%.
Elsewhere in the sector, U.S.-listed shares of Dutch financial service firm ING Groep fell 7.4% after the Wall Street Journal reported that the Federal Reserve was examining the proposed acquisition of ING’s U.S. online-banking business by Capital One Financial Group.
On the upside, shares in semiconductor manufacturer NetLogic Microsystems soared 50.3% after it agreed to be acquired by larger rival Broadcom in a deal valued at nearly USD3.7 billion. Broadcom shares fell 1.3% in pre-market trade.
Other stocks in focus include information-services provider McGraw-Hill, which announced plans to split its markets and education businesses into two public companies. The company also said it would accelerate its USD1 billion share-buyback plan.
Across the Atlantic, European stock markets plunged, with shares in French lenders tumbling amid fears of an imminent credit downgrade.
The EURO STOXX 50 plummeted 4.5%, France’s CAC 40 sank 4.8%, Germany's DAX dropped 3.7%, while Britain's FTSE 100 slumped 2.5%.
During the Asian trading session, Hong Kong’s Hang Seng Index lost 4.2%, while Japan’s Nikkei 225 Index fell 2.3% to settle at a two-and-a-half-year low, as exporters came under pressure.
Later in the day, Federal Reserve Bank of Dallas President Richard Fisher was to speak on monetary policy in Dallas. His comments will be closely watched for any clues regarding further easing measures.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a loss of 1.5%, the S&P 500 futures indicated a decline of 1.55%, while the Nasdaq 100 futures pointed to a 1.45% drop.
German media reported over the weekend that Germany’s Finance Ministry was studying the impact of a possible Greek default, including a scenario in which the debt-laden country exited the euro zone and reintroduced the drachma.
Adding to investors’ nervousness over the region’s debt crisis, the Wall Street Journal reported that major French banks could be downgraded by Moody's Investors Service this week because of their exposure to Greek sovereign debt.
Shares in the financial sector performed poorly in pre-market trade, tracking their global counterparts lower. Bank of America shares dropped 4%, shares in Citigroup retreated 3.9%, while U.S.-listed shares of National Bank of Greece tumbled 9.65%.
Elsewhere in the sector, U.S.-listed shares of Dutch financial service firm ING Groep fell 7.4% after the Wall Street Journal reported that the Federal Reserve was examining the proposed acquisition of ING’s U.S. online-banking business by Capital One Financial Group.
On the upside, shares in semiconductor manufacturer NetLogic Microsystems soared 50.3% after it agreed to be acquired by larger rival Broadcom in a deal valued at nearly USD3.7 billion. Broadcom shares fell 1.3% in pre-market trade.
Other stocks in focus include information-services provider McGraw-Hill, which announced plans to split its markets and education businesses into two public companies. The company also said it would accelerate its USD1 billion share-buyback plan.
Across the Atlantic, European stock markets plunged, with shares in French lenders tumbling amid fears of an imminent credit downgrade.
The EURO STOXX 50 plummeted 4.5%, France’s CAC 40 sank 4.8%, Germany's DAX dropped 3.7%, while Britain's FTSE 100 slumped 2.5%.
During the Asian trading session, Hong Kong’s Hang Seng Index lost 4.2%, while Japan’s Nikkei 225 Index fell 2.3% to settle at a two-and-a-half-year low, as exporters came under pressure.
Later in the day, Federal Reserve Bank of Dallas President Richard Fisher was to speak on monetary policy in Dallas. His comments will be closely watched for any clues regarding further easing measures.