U.S. stock-index futures dropped 1 percent today on growing concern that Greece will leave the euro region after bailout talks with lenders broke down over the weekend.
Futures for Dow Jones Industrial Average tumbled 1 percent to 17,700, while those for the S&P 500 dropped 1 percent to 2,074.50. Nasdaq-100 futures were pushed 1.2 percent lower to 4,425.25.
Negotiations between Greece and its creditors deteriorated over the weekend after Greece’s Prime Minister Alexis Tsipras unexpectedly called for a referendum on whether to accept reform measures demanded by the country’s lenders. The country’s parliament approved the vote, which will be held July 5.
Yesterday, the European Central Bank capped the level of emergency funding for Greece’s banking system. Greek banks will be closed until July 6 and locals were limited to taking just €60 a day ($66.70) out of ATMs. There will be no equity trading in Athens this week.
On Friday, the Dow Jones Industrial Average closed up 0.3 percent and the Nasdaq Composite fell 0.6 percent. The S&P 500 ended flat.
DATA:
AT 10 a.m., May data for pending home sales from the National Association of Realtors, which is expected to have dropped 1.2 percent after rising 3.4 percent in April.
The Federal Reserve Bank of Dallas will issue manufacturing outlook survey for June at 10:30 a.m.
MOVERS:
General Electric (NYSE:GE) was down 1.1 percent in premarket trading after it announced it will sell its U.S., Mexico, Australia and New Zealand fleet businesses for $6.9 billion, with a separate smaller deal in the works to unload its business in Europe.
Novartis (NYSE:NVS), a drug maker, is buying biotech firm Spinifex Pharmaceuticals, which specializes in pain management, for $200 million, with the possibility of further payments in the future. Spinifex is currently owned by venture capital firms in the U.S. and Australia.
OTHER MARKETS:
The Stoxx Europe 600 was down 2.4 percent midway through the session, wiping out most of the previous week’s gains on optimism that a deal would be done. Greece’s stock market will remain closed this week along with the country’s banks.
Chinese stocks dropped, with the Shanghai Composite breaking further into bear-market territory, despite a decision Saturday by China’s central bank to cut interest rates.
COMMODITIES:
Gold, another asset considered a haven, was up 0.3 percent at $1,176.80 a troy ounce.
Brent Crude Oil was 2.8 percent lower at $61.53 per barrel.