New York Stock Exchange
U.S. stock-index futures declined as Spanish borrowing costs surged, sparking speculation the country will be forced to ask for a bailout and outweighing optimism Greece will not leave the euro area.
Goldman Sachs Group Inc. (GS) declined 0.8 percent in German trading. Facebook Inc. (FB) retreated 1.1 percent in early New York trading.
Standard & Poor’s 500 Index futures expiring in September dropped 0.2 percent to 1,334.3 at 6:48 a.m. in New York, after rising as much as 0.7 percent and falling as much as 0.6 percent. The benchmark gauge advanced 1.3 percent last week on speculation central banks will act to boost the global economy. Dow Jones Industrial Average futures lost 37 points, or 0.3 percent, to 12,673 Monday.
“We all know there’s still a long and hard road ahead for Greece and the problems of Europe aren’t solved by this election,” said Belinda Allen, senior analyst at Colonial First State Global Asset Management in Sydney. “There are still concerns about Spain. Its debt metrics, its banking system needs a lot of work.”
According to Bloomberg, Spanish 10-year bonds declined, pushing yields to as much as 7.139 percent, a euro-era record. The benchmark yield was trading at 7.12 at 12:30 p.m. in Madrid.
At this rate, Spain may lose market access and become the fourth euro member to need external funding, investors that oversee more than $3.2 trillion of assets said.