By Bryan McCormick
US stock index futures are moderately lower this morning. Markets overnight were mixed in Asia, with the down move in the eurozone and UK markets being the primary influencer so far today.
New concerns over Greek debt arose after German chancellor Merkel appeared to remove support for an EU-sponsored pledge of direct support for Greece. This would leave the IMF as the alternative for Greece to gain funding. That helped to send shares in Europe lower, after spreads on debt widened, and the euro initially traded lower.
In the US, the passage of health care expansion also provoked a downward response in overnight futures. It will be some time before the full effects of the legislation are known, but markets are likely to react more immediately.
Global stocks in general were lower. The combination of India's rate hike last week, signaling inflation concerns, and growing worries over developed countries' bloated government balance sheets sent bearish ripples across emerging markets.
In many respects, this is the direct opposite of what we have seen in past crises. The new reality is that emerging countries are concerned about the stability of their customers in developed countries, with local concerns focused on the overheating of their own economies.
There are no economic reports in the US for traders to wade through, leaving the issues above as potential catalysts for today.
In earnings, we will hear from Tiffany & Co. (TIF) today. This report may be seen as a bellwether for up-market retailers, so it will be closely watched. Tomorrow Adobe Systems (ADBE) is the likely to be the key report of the day in technology. Jabil Circuits (JBL) will report, as will Walgreen (WAG), and Darden Restaurants (DRI). Any or all of these stocks could move today ahead of their news.
Disclosure: No positions
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