U.S. stock-index futures fall as Greek debt deadline approaches
By Bloomberg
U.S. stock-index futures fell, as Greece’s creditors said discussions to resolve the country’s debt crisis must intensify.
Standard & Poor’s 500 Index E-mini contracts expiring in June slipped 0.5 percent to 2,098.25 at 10:24 a.m. in London. Dow Jones Industrial Average futures fell 90 points, or 0.5 percent, to 17,933. Nasdaq 100 Index contracts lost 0.7 percent.
“Greece creates uncertainty and it is a good reason for the markets to consolidate,” said Christian Gattiker, head of research at Julius Baer Group Ltd. in Zurich. Stocks will continue to fall today “unless we really see a breakthrough with the negotiations with Greece or a breakdown, but it is hard to believe anything happens before Friday.”
European leaders and the head of the International Monetary Fund agreed to step up the intensity of talks over Greece’s fate after a meeting in Berlin on how to prevent the Mediterranean nation defaulting.
Time is running out for an agreement as Greece faces a debt repayment to the IMF on Friday. While the country claims it can make the payment, it’s the smallest of four totaling almost 1.6 billion euros ($1.75 billion) this month.
U.S. stocks climbed Monday, after equities posted their worst week in six, as better-than-forecast growth in manufacturing overshadowed data showing consumer spending stalled.
Factory Orders
Investors will also watch data on factory orders today and a report on initial jobless claims later this week for clues on the timing of a Federal Reserve rate increase. Orders contracted 0.1 percent in April, according to economists surveyed by Bloomberg.
The central bank has indicated that any increase in borrowing costs would be shallow and gradual. Economists forecast the Fed will raise rates in September.
Fiat Chrysler Automobiles NV slipped 2.4 percent in early New York trading. The car manufacturer delayed the redesign or release of some current or new vehicles in North America in the past year, Reuters reported, citing suppliers familiar with the company’s plans.
PPL Corp. jumped 6.5 percent after Standard & Poor’s raised the utility company’s credit rating.
American International Group Inc. climbed 0.6 percent. The insurer will sell 50 million shares of AerCap Holdings NV in an initial public offering, according to the aircraft leasing company.
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