U.S. stock-index futures declined, signaling equities will slide for a third day, as Greece and its creditors failed to break an impasse in debt negotiations.
Standard & Poor’s 500 Index E-mini contracts expiring in September slid 0.4 percent to 2,067.5 at 9:56 a.m. in London. Dow Jones Industrial Average futures retreated 68 points, or 0.4 percent, to 17,644.
The S&P 500 on Monday slipped below its average price during the past 100 days after weekend talks between Greece and its creditors broke up acrimoniously. Disappointing factory data increased investor uncertainty as to whether the economic recovery is strong enough to withstand a rate increase. A report on housing today may offer further clues, with economists forecasting weaker data for May.
The Federal Reserve begins a two-day meeting today, at which officials are expected to leave interest rates unchanged. The probability for a September increase has risen to 53 percent since the central bank’s last session, data compiled by Bloomberg show.
Investors are looking for any signs of progress in Greece’s debt talks after the Mediterranean nation signaled it won’t make further concessions to unlock bailout funds needed to avoid default. Finance Minister Yanis Varoufakis told Germany’s Bild newspaper any new proposals would need to be worked out at a lower level before they could be presented to the finance ministers’ meeting later this week.
Source : Bloomberg