US stock futures fall as Greek crisis worsens

The blue-chip Euro STOXX 50 index was set for its worst one-day percentage loss since late 2011.

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US stock futures fall as Greek crisis worsens
New York Stock Exchange


US stock index futures fell around 1% on Monday as fears that Greece could be the first country to exit the euro zone intensified after bailout talks with lenders broke down over the weekend.

The European Central Bank froze funding to Greek banks, forcing Athens to shut banks to keep them from collapsing.

European Commission President Jean-Claude Juncker said he expects euro zone to remain at 19 members. "This is not a game of Liar's poker, either we all win or all lose."

The blue-chip Euro STOXX 50 index was set for its worst one-day percentage loss since late 2011.

Greece faces defaulting on 1.6 billion euros ($1.8 billion) of loans from the International Monetary Fund on Tuesday.

The impending default on IMF loans leaves Greece sliding towards a euro exit and has unforeseeable consequences for Europe's grand project to bind its nations into an unbreakable union by means of a common currency.

Adding to the uncertainty, Chinese stocks closed sharply lower after a frantically volatile day of trading despite surprise monetary easing moves by the central bank.

US investors also await May data for pending home sales from the National Association of Realtors, which is expected to have dropped 1.2% after rising 3.4% in April. The data is expected to be released at 10:00 ET (1400 GMT).

The Federal Reserve Bank of Dallas will issue manufacturing outlook survey for June at 10:30 ET (1430 GMT). 

Investors have been keeping a keen eye on data to see if the US economy has recovered from a slow start at the beginning of the year.

The Federal Reserve has said that it will look at economic data and will raise rates when it sees a sustained rebound in the economy.

Futures snapshot at 6:38 a.m. EDT:

S&P 500 e-minis were down 23.25 points, or 1.11%, with 355,383 contracts traded.

Nasdaq 100 e-minis were down 54 points, or 1.21%, on volume of 40,264 contracts.

Dow e-minis were down 189 points, or 1.06%, with 41,978 contracts changing hands.

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