Futures slip on euro zone deal doubts
Stock index futures fell on Monday on lingering concerns a deal over economic integration in Europe will not be enough to keep the region's two-year sovereign debt crisis from spreading further.
Rating agency Moody's said on Monday last week's summit did not produce decisive initiatives and left the euro area prone to further shocks, and it will revisit the ratings of European Union nations in the first.
Also, Standard & Poor's put more pressure on the region Monday, with its chief economist saying time was running out for the currency bloc to resolve shock to get it moving.
The European Union has decided to set stricter budget rules for the single currency area and to provide up to 200 billion euros in bilateral loans to the International Monetary Fund in response to the turmoil.
S&P 500 futures fell 12.9 points and were below fair
value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures dropped 92 points, and Nasdaq 100 futures lost 12.75 points.
The cost of insuring euro zone sovereign debt against default rose and the yield on 5-year Italian bonds rose above 7 percent reflecting market unhappiness with last week's deal.
U.S. bank shares could fall during the regular session as investors assess the possibility of tighter credit in Europe. Bank of America Corp
An index of European bank shares <.SX7P> fell more than 2 percent.
Resource-related stocks will also be in focus after U.S. crude oil futures fell 1.1 percent on deepening concern over the prospects for the euro zone, and copper prices dropped more than 2 percent to a near two-week low.
Alcoa Inc
On Friday, the Dow Jones industrial average <.DJI> ended up 186.56 points, or 1.55 percent, at 12,184.26. The Standard & Poor's 500 Index <.SPX> finished up 20.84 points, or 1.69 percent, at 1,255.19. The Nasdaq Composite Index <.IXIC> closed up 50.47 points, or 1.94 percent, at 2,646.85.
(Reporting By Rodrigo Campos; editing by Jeffrey Benkoe)
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