Stock market: Futures slide on Greek indecision

Stock market looks to open lower as emergency talks fail to produce Greek rescue package. A disorderly Greek default could send shock waves through the stock market. 

Richard Drew/AP
Trader Warren Meyers (right) is illuminated by his handheld device as he works on the floor of the New York Stock Exchange Friday. After a big run-up last week, stock market futures were down Feb. 6, 2012, because of concerns that Greece will not reach a deal to avoid default next month.

US stock futures fell Monday as talks dragged on among Greek political leaders over a fresh austerity package that is required if the debt-ridden country is to get a crucial bailout package.

Dow futures are down 24 points at 12,769. The broader Standard & Poor's 500 futures fell 4 points to 1,335. The Nasdaq composite futures fell 5 points to 2,519.

The declines follow a big gain Friday on the heels of surprisingly good U.S. employment figures.

In Europe, the leaders of the parties backing Greece's coalition government are set to hold a second day of emergency talks over austerity measures that rescue creditors are demanding in return for more money.

Fears that a deal won't emerge have reinforced concerns of a disorderly Greek debt default that could send shock waves through the global economy. Prime Minister Lucas Papademos will meet with negotiators from the eurozone and the International Monetary Fund in the afternoon and then with the leaders of the three parties backing his coalition.

In Europe, the FTSE 100 index of leading British shares was down 0.2 percent at 5,892 while Germany's DAX fell 0.2 percent to 6,756. The CAC-40 in France was 0.6 percent lower at 3,406.

Oil prices tracked the broader market trends, with benchmark oil for March delivery down $1.17 at $96.67 a barrel in electronic trading on the New York Mercantile Exchange.

Greece will likely remain the focal point over the week, though a raft of corporate earnings, particularly in Europe, and a host of central bank meetings could garner some interest. The European Central Bank's monthly policy meeting on Thursday could be crucial in determining market expectations of whether there will be further interest rate reductions. Meanwhile, many traders think the Bank of England will clear the way to inject more money into the U.K. economy in the hope of boosting lending.

Earlier Asian shares mostly traded higher as investors there had their first chance to respond to join in the advance generated by Friday's upbeat jobs data.

Japan's Nikkei 225 index rose 1.1 percent to close at 8,929.20, its highest closing in more than three months but Hong Kong's Hang Seng lost 0.2 percent to 20,709.94. Benchmarks in Singapore and mainland China also rose.

of stories this month > Get unlimited stories
You've read  of  free articles. Subscribe to continue.

Unlimited digital access $11/month.

Get unlimited Monitor journalism.