German Data Weigh on Stock Futures

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Published September 24, 2012

| FOXBusiness

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U.S. stock-index futures fell on Monday after a closely-watched survey showed business confidence in Germany, Europe's biggest economy, fell for the fifth month in a row in September.

Today's Markets

As of 7:50 a.m. ET, Dow Jones Industrial Average futures fell 43 points to 13457, S&P 500 futures slipped 4.8 points to 1448 and Nasdaq 100 futures slumped 7.5 points to 2845.

The markets snapped a two-week winning streak last week, ending modestly to the downside. The debt crisis in the eurozone took center stage as the week began. 

The Ifo Business Climate Index for Germany fell to 101.4 in September from 102.3. Economists expected the gauge to edge up slightly to 102.5. 

"The companies surveyed are again less satisfied with their current business situation," Hans-Werner Sinn, president of the Ifo institute said in a release. "They also expressed greater pessimism about the future."

The data serve as yet another reminder that despite easing from the European Central Bank, even the eurozone's strongest economies aren't immune to the currency bloc's debt crisis. 

Spain is expected to capture traders' attention this week as well. The Financial Times reported last week that the country may reveal economic reforms necessary to receive EU and ECB help on lowering its borrowing costs as soon as Thursday. 

Oil futures continued falling after getting thrashed last week, tumbling 6.5% in the worst week since June. The benchmark contract traded in New York dipped 99 cents, or 1.1%, to $91.90 a barrel. Wholesale New York Harbor gasoline dipped 0.63% to $2.924 a gallon. 

In metals, gold slumped $16.10, or 0.9%, to $1,762 a troy ounce. 

There are no major economic reports due on Monday. 

Foreign Markets

The Euro Stoxx 50 sold off by 1.1% to 2550, the English FTSE 100 dipped 0.57% to 5819 and the German DAX dropped 0.74% to 7396.

In Asia, the Japanese Nikkei 225 slipped 0.45% to 9069 and the Chinese Hang Seng fell 0.19% to 20695.

URL

http://www.foxbusiness.com/markets/2012/09/24/german-data-weigh-on-stock-futures/