- Special Report: Syria's Islamists seize control as moderates dither
- Angelina Jolie stunt double sues News Corp over hacking
- Global shares firm, dollar steady before Fed decision
- Kanye West wins over critics with 'daring' new album 'Yeezus'
- Journalist who brought down U.S. general is killed in Los Angeles car crash
US STOCKS-Futures sharply lower on U.S. debt gridlock
* Top U.S. official warns of "stressful" days ahead
* Moody's cuts Greek sovereign debt rating
* Futures down: S&P 9.6 pts, Dow 87 pts, Nasdaq 13 pts
* For up-to-the-minute market news see [STXNEWS/US]
By Angela Moon
NEW YORK, July 25 (Reuters) - U.S. stock index futures fell sharply on Monday as political brinkmanship in Washington over the U.S. debt ceiling sparked fears of a U.S. rating downgrade, sending world equities lower and pushing gold to a record high.
* A divided U.S. Congress pursued rival budget plans that appeared unlikely to win broad support, pushing the country closer to a debt default. For details, see [ID:nN1E76M0B0]
* Analysts still expect a deal to raise the U.S. debt ceiling by Aug. 2. But the impasse pushed the United States one step closer to losing its coveted triple-A credit rating as Democrats and Republicans seemed unlikely to agree on a deal. [ID:nN1E76N0EP]
* White House Chief of Staff Bill Daley warned there would be a "few stressful days" ahead for financial markets. But Treasury Secretary Timothy Geithner was confident a deal would be reached. [ID:nN1E76N01Q] <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Full coverage of U.S. budget and debt [nUSBUDGET] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
* The political wrangling has weighed on equity markets, but that has been somewhat offset by positive earnings news. Major indexes notched solid gains last week, with the S&P 500 and Nasdaq rising more than 2 percent.
* S&P 500 futures SPc1 fell 9.6 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 slid 87 points and Nasdaq 100 futures NDc1 lost 13 points.
* European shares lost ground in early trade, threatening a one-week rally, as banking stocks dropped. U.S.-listed shares of Barclays (BCS.N) fell 3.2 percent to $15.10 in premarket trade.
* Gold surged to a record high above $1,620 an ounce in Asian trading, the fifth record high for bullion in less than two weeks.
* Also rattling investors, credit rating agency Moody's cut Greece's sovereign debt by three notches on Monday to 'Ca', just one level above default. Greece has the lowest rating of any country in the world covered by Moody's. [ID:nL3E7IP0P2]
* Kimberly-Clark Corp (KMB.N) reported results early Monday. [ID:nASA02I9W]
* Investors also awaited earnings from Texas Instruments Inc TXN.N and Anadarko Petroleum Corp (APC.N).
* On Friday, promising chipmaker earnings and optimism about a debt deal triggered a move into growth-oriented shares such as techs. (Reporting by Angela Moon; editing by Jeffrey Benkoe)
- Tweet this
- Share this
- Digg this