US futures lower on fear of soaring Italian debt

Jul 12 2011 - 9:52am

Images

In this June 2, 2011 photo, American flags are displayed on the New York Stock Exchange in New York. Global stocks took another pounding Tuesday, July 12, 2011, while borrowing costs for Spain and Italy spiked higher as investors worried that Europe's debt crisis could infect the continent's larger economies.(AP Photo/Seth Wenig)
Traders work on the floor at the New York Stock Exchange in New York, Monday, July 11, 2011. The Dow Jones industrial average lost 151.44 points, or 1.2 percent, to close at 12,505.76 Monday, the lowest level so far in July. The European debt crisis appears to be widening, with concerns about government debt defaults spreading beyond Greece, Ireland and Portugal to much larger countries. (AP Photo/Seth Wenig)
A man walks past a bank's screen showing the Hang Seng Index in Hong Kong Tuesday, July 12, 2011. Fears that Italy and Spain may succumb to Europe's debt crisis added to recent pessimism about the global economic recovery, sending share prices tumbling Tuesday across Asia. The Hang Seng Index shed 684.07 points, or 3.06 percent, to 21,663.16. (AP Photo/Kin Cheung)
A man walks past a screen showing the Korea Composite Stock Price Index (KOSPI) in Seoul, South Korea, Tuesday, July 12, 2011. Fears that Italy and Spain may succumb to Europe's debt crisis added to recent pessimism about the global economic recovery, sending share prices tumbling Tuesday across Asia. The Korea Composite Stock Price Index fell 2.2 percent, or 47.43 point, to close at 2,109.73. (AP Photo/Lee Jin-man)
A monitor indicates the Hang Seng Index in the Hong Kong Stock Exchange Tuesday, July 12, 2011. Fears that Italy and Spain may succumb to Europe's debt crisis added to recent pessimism about the global economic recovery, sending share prices tumbling Tuesday across Asia. Hong Kong's Hang Seng slid 2 percent to 21,903.18, South Korea's Kospi retreated 2.1 percent to 2,111.61 and the Shanghai Composite Index lost 1.3 percent to 2,767.32. (AP Photo/Kin Cheung)
In this June 2, 2011 photo, American flags are displayed on the New York Stock Exchange in New York. Global stocks took another pounding Tuesday, July 12, 2011, while borrowing costs for Spain and Italy spiked higher as investors worried that Europe's debt crisis could infect the continent's larger economies.(AP Photo/Seth Wenig)
Traders work on the floor at the New York Stock Exchange in New York, Monday, July 11, 2011. The Dow Jones industrial average lost 151.44 points, or 1.2 percent, to close at 12,505.76 Monday, the lowest level so far in July. The European debt crisis appears to be widening, with concerns about government debt defaults spreading beyond Greece, Ireland and Portugal to much larger countries. (AP Photo/Seth Wenig)
A man walks past a bank's screen showing the Hang Seng Index in Hong Kong Tuesday, July 12, 2011. Fears that Italy and Spain may succumb to Europe's debt crisis added to recent pessimism about the global economic recovery, sending share prices tumbling Tuesday across Asia. The Hang Seng Index shed 684.07 points, or 3.06 percent, to 21,663.16. (AP Photo/Kin Cheung)
A man walks past a screen showing the Korea Composite Stock Price Index (KOSPI) in Seoul, South Korea, Tuesday, July 12, 2011. Fears that Italy and Spain may succumb to Europe's debt crisis added to recent pessimism about the global economic recovery, sending share prices tumbling Tuesday across Asia. The Korea Composite Stock Price Index fell 2.2 percent, or 47.43 point, to close at 2,109.73. (AP Photo/Lee Jin-man)
A monitor indicates the Hang Seng Index in the Hong Kong Stock Exchange Tuesday, July 12, 2011. Fears that Italy and Spain may succumb to Europe's debt crisis added to recent pessimism about the global economic recovery, sending share prices tumbling Tuesday across Asia. Hong Kong's Hang Seng slid 2 percent to 21,903.18, South Korea's Kospi retreated 2.1 percent to 2,111.61 and the Shanghai Composite Index lost 1.3 percent to 2,767.32. (AP Photo/Kin Cheung)

 

NEW YORK  -- Stock futures are falling for the third straight day as investors weigh the prospect that Italy, Europe's third-largest economy, could be the next country unable to meet its debt obligations.

Spain, Europe's fourth-largest economy, also faces a budget crisis. Meanwhile, international lenders have not yet confirmed terms for a Greek rescue package. That has reignited concerns that Greece might default.

The European debt problems have left investors around the world fearful of the consequences for the global economy.

Government bond yields for Italy and Spain have spiked as investors lose confidence in the quality of their debt.

Dow Jones industrial average futures are down 74 points, or 0.6 percent, to 12,415 in premarket trading. Standard & Poor's 500 index futures are down 11, or 0.8 percent, at 1,307. Nasdaq 100 futures are down 19, or 0.8 percent at 2,327.

 

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