By WILLIAM L. WATTS, Wall Street Journal
U.S. stock index futures edged into negative territory Wednesday, taking a cue from Europe, after a top Italian politician cast doubt on prospects for forming a new government.
About two hours before the start of trading, Dow Jones Industrial Average futures fell 58 points, or 0.4%. The S&P 500 futures slipped 6 points, also down .4%. Changes in futures don't always accurately predict early market moves after the opening bell.
Futures dipped into negative territory after news reports said Italian politician Pier Luigi Bersani, the head of a center-left alliance, ruled out forming a coalition government and quoted him as saying that only an "insane person" would want to govern Italy.
Italy has struggled to put together a government since inconclusive elections in late February. Mr. Bersani's remarks indicate that Italy will continue to struggle to put together a government, raising the prospects of another election in the near term.
The Stoxx Europe 600 index fell 0.3%, while Italy's FTSE MIB index was down 1%.
Still, recent concerns over Europe—including Cyprus—have done little to dent overall enthusiasm for equities.
"Despite Cyprus embarking on capital controls to stave off a run on its banks and the threat of contagion through the euro zone, investors are still looking for any excuse to buy into this market," said Mike McCudden, head of derivatives at stockbroker Interactive Investor in London.
Strategists said trading conditions could be thin ahead of a three-day Easter weekend. U.S. markets will be closed Friday for Good Friday.
Upbeat data on durable-goods orders and house prices helped lift U.S. stocks on Tuesday, analysts said, with the Dow Jones Industrial Average hitting a record and the S&P 500 closing less than two points away from its all-time closing high.
The economic calendar features data on February pending home sales, while some of the Federal Reserve's leading policy doves—Boston Fed President Eric Rosengren, Cleveland Fed President Sandra Pianalto, Minneapolis Fed President Narayana Kocherlakota, and Chicago Fed President Charles Evans—are each slated separately to speak later Wednesday.
Meanwhile, Cypriot authorities were expected to announce capital controls later Wednesday. Cyprus is aiming Thursday to reopen its banks; they have been closed since March 16 as the country worked out a €10 billion ($12.86 billion) bailout.
The restrictions will aim to prevent a mass withdrawal of deposits in the face of plans to institute a haircut on uninsured deposits as part of a restructuring of the country's banking sector.
No comments:
Post a Comment