TEHRAN, October 02 -U.S. stocks were set to open lower on Tuesday after anti-euro comments from an Italian lawmaker reignited investor worries over a euro zone breakup, while relief from a reworked NAFTA deal faded.
TEHRAN, Young Journalists Club (YJC) -U.S. stocks were set to open lower on Tuesday after anti-euro comments from an Italian lawmaker reignited investor worries over a euro zone breakup, while relief from a reworked NAFTA deal faded.
Italy would enjoy more favorable economic conditions outside of the euro zone, said Claudio Borghi, a eurosceptic who chairs the budget committee of the lower house of parliament.
Borghi later clarified but his comments pushed Italy’s bond yields to multi-year highs, sparked a selloff in Italian banks and pressured world stock markets.
“Clearly a headwind coming into the day was European markets being soft... early trade is more driven by what’s going on in the overall markets,” said Art Hogan, chief market strategist at B. Riley FBR in New York.
Big U.S. lenders including Morgan Stanley (MS.N), Bank of America (BAC.N) and Citigroup (C.N) were trading down between 0.3 percent and 0.58 percent before the bell.
“Banks and bluechip stocks in general are off a bit and that’s a little bit of a pressure point as we head into early trade,” Hogan said.
At 8:36 a.m. ET, Dow e-minis 1YMc1 were down 55 points, or 0.21 percent. S&P 500 e-minis ESc1 were down 4 points, or 0.14 percent and Nasdaq 100 e-minis NQc1 were down 20 points, or 0.26 percent.
Source: Reuters
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