US STOCKS-Futures down on China, Fed concerns

Mon Jun 24, 2013 7:31am EDT

Related Topics

* Barrick Gold to lay off workers

* Keynote Systems to be acquired for $20 per share

* Futures off: Dow 116 pts, S&P 14.2 pts, Nasdaq 17.75 pts

By Chuck Mikolajczak

NEW YORK, June 24 (Reuters) - U.S. stock index futures fell on Monday after the S&P 500 suffered its worst weekly decline in two months, on concerns stimulus measures by the U.S. Federal Reserve may be drawing to a close and a possible cash crunch in China.

* Banking shares in China tumbled to their biggest daily loss in almost four years after the People's Bank of China said banks needed to do a better job of managing their cash and lending as the central bank attempts to move the world's second largest economy away from credit-driven investment.

* The S&P 500 has fallen 2.3 percent in June, putting the benchmark S&P index on track for its worst monthly performance since May 2012. The index is down 4.6 percent from its all-time closing high reached on May 21.

* Concerns the Fed may be planning to reduce its stimulus pushed up yields on 10-year Treasuries to 2.6 percent, its highest level since August 2011.

* S&P 500 futures lost 14.2 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 declined 116 points, and Nasdaq 100 futures dropped 17.75 points.

* Barrick Gold Corp will lay off up to a third of its corporate staff at its headquarters in Toronto and other offices, sources said, as the world's top bullion producer intensifies a downsizing plan amid a slump in the price of gold. U.S.-listed shares dipped 1.7 percent to $16.61 in premarket trade.

* Freeport McMoRan Copper and Gold Inc has restarted some operations at the world's second biggest copper mine after receiving approval from the Indonesian government.

* China's Sinopec Group has agreed to buy Marathon Oil Corp's Angolan offshore oil and gas field for $1.52 billion, Asia's largest refiner producer said.

* Keynote Systems Inc said it had agreed to be acquired by an affiliate of private equity firm Thoma Bravo LLC for about $395 million, or $20 per share.

* European shares extended losses and hit a session low, led by mining stocks on fresh concerns about falling demand from China.

FILED UNDER: