October 4, 2011 by staff
Stock Futures, U.S. Stock futures fell Wednesday, pressured by concerns about Greece’s ability to avoid a debt default, as investors awaited comments about the U.S. economy by Federal Reserve Chairman.
Futures on the Dow Jones Industrial Average fell 71 points to 10,458 and the index of the Standard & Poor 500-stock fell 7.2 points to 1079.10. Nasdaq 100 fell 10.5 points to 2054.70.
The Dow Jones industrial average fell 2.4% on Monday after its lowest close since September 2010.
European markets fell sharply Tuesday equities after euro zone finance ministers said last night that will take a decision on whether to disburse more aid to Greece in late October that stated above.
The ministers also noted that private bondholders may have large losses on debt holdings as part of the Greek rescue seconds.
The news – which comes after the Greek government admitted Sunday that he will not meet its deficit reduction targets – only served to intensify concerns that Greece can meet its obligations.
The German DAX 30 index fell 3.4% in morning trading, while the euro was steady at 1.3190 and after sinking on Monday.
Dexia’s shares fell almost 17% in Brussels, the fear that the Franco-Belgian bank may be split. Dexia said in a statement that the size of its non-strategic asset portfolio is having a detrimental impact on the group structure.
In addition to the debt crisis in the euro zone, investors are likely to closely watch the testimony on Tuesday about the economic prospects of the Fed, Ben Bernanke before the Joint Economic Committee starting at 10 am, ET.
The Fed chief could face questions about the effectiveness of their business called Operation in bond swaps that short maturity of the securities and their maturity, as well as on the slow U.S. economic recovery and the bank’s exposure to Europe.
Data on U.S. factory orders for August are also due later on Tuesday.
On the corporate front, Apple Inc. (AAPL) is likely to steal the spotlight Tuesday with his case in California, where it expects to release its latest iPhone.
More than 55 million iPhones were shipped in the first nine months of current fiscal year of the company, representing 45% of total company revenues for that time.
In trading before the opening, shares of UBS AG (UBS, UBSN.VX) gained 3% after the Swiss bank said on Tuesday it expected to report a “modest” net profit in the third quarter. The results include loss of 2.3 billion and that of the previously disclosed unauthorized trading.
Shares of Deutsche Bank AG (DB, DBK.XE) fell 3% in pre after the German bank said it will not be able to achieve its goal of 2,011 million dollars before taxes of 10 euros (+ 13 , 2 billion) of its main activities as the euro zone debt crisis has affected the volume of transactions and income. The bank also said impairment charges book on Greek sovereign debt of 250 million euros and cut about 500 jobs.
In commodity markets, gold futures climbed 13 to December and $ 1,670 an ounce in electronic trading on the Globex.
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