US stock-index futures drop on Korean tension, Europe concern
Wednesday, 26 May 2010
SINGAPORE, May 25 (Bloomberg): US stock-index futures sank after a report that North Korean leader Kim Jong Il last week ordered his military to prepare for combat and amid mounting concern Europe's debt crisis will endanger the global recovery.
Morgan Stanley retreated 3.7 per cent in German trading, leading a decline among bank shares. Microsoft Corp lost 2.6 per cent after the world's largest software maker's Chief Executive Officer Steve Ballmer said he is less optimistic about China as a market.
Standard & Poor's 500 Index futures expiring next month dropped 2.6 per cent to 1,043.6 as of 10:33 am in London. The US equities benchmark has slumped 12 per cent from a 19-month high on April 23 amid concern mounting budget deficits in some European countries and China's steps to curb asset bubbles will derail global growth. Dow Jones Industrial Average futures lost 2.2 per cent to 9,827 Tuesday and Nasdaq-100 Index futures retreated 2.2 per cent to 1,772.
"The troubles that we have are big enough to keep this downtrend going for quite some time," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.
Morgan Stanley retreated 3.7 per cent in German trading, leading a decline among bank shares. Microsoft Corp lost 2.6 per cent after the world's largest software maker's Chief Executive Officer Steve Ballmer said he is less optimistic about China as a market.
Standard & Poor's 500 Index futures expiring next month dropped 2.6 per cent to 1,043.6 as of 10:33 am in London. The US equities benchmark has slumped 12 per cent from a 19-month high on April 23 amid concern mounting budget deficits in some European countries and China's steps to curb asset bubbles will derail global growth. Dow Jones Industrial Average futures lost 2.2 per cent to 9,827 Tuesday and Nasdaq-100 Index futures retreated 2.2 per cent to 1,772.
"The troubles that we have are big enough to keep this downtrend going for quite some time," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.