Greek Crisis Push down Stock Index Futures

October 03 00:00 2011

New York, October 3 ( – Concerns over Greece’s unstable finances were again in the limelight and hastened the extension of equity losses from the previous session with the result that stock index futures were modestly down on Monday. According to draft budget figures, Greece is set to miss its deficit targets for both this year and next. Greece would then have no option but to seek more bailout funds from international leaders. If the financing is not provided, Greece would be forced to default and this would lead to global recession.

In the euro zone, the sovereign debt problems have pressured U.S. equities and Wall Street had to witness the worst quarter since the crisis in 2008. European shares went down 1.6 percent early Monday while Morgan Stanley lost 1 percent to $13.38 and gold rose 2.4 percent.

S&P 500 futures dropped 2.8 percent and Dow Jones industrial average futures fell 15 points whereas Nasdaq 100 futures took off 11.25 points. Yahoo (NASDAQ: YHOO) rose 8.6 percent as Chinese e-commerce giant Alibaba expressed his keenness to buy the company. Investors are waiting for September data on manufacturing from the Institute for Supply Management which is due at 10 a.m. EDT. Eastman Kodak rose 46 percent to $1.14 premarket after losing half its value on Friday.