The plethora of worries plaguing the eurozone has apparently found their way across the Atlantic, as indicated by the U.S. index futures, which point to a lower opening. In the absence of any major domestic economic catalysts, traders may stay glued to the events that unfold in the Eurozone debt crisis saga, as the region battles its debt woes. A key Eurogroup meeting and the developments in Greece to break the political impasse could be the focus of the markets in today's session.
As of 6:30 am ET, the Dow futures are slipping 96 points, the S&P 500 futures are down 12 points and the Nasdaq 100 futures are declining 23.75 points.
U.S. stocks extended their slide in the week ended May 11th, as the political impasse in Greece, a lack of any major domestic economic catalysts and a couple of insipid corporate tidings spooked markets.
Manufacturing and retail sales are among the key economic reports due for release in the unfolding week. Traders are expected to closely track the results of the manufacturing surveys for May by the New York Federal Reserve and the Philadelphia Federal Reserve, the Federal Reserve's industrial production report for April, the Commerce Department's retail sales report for April, the FOMC minutes and the weekly jobless claims report.
The National Association of Home Builders' housing market index for May, the housing starts report for April and the consumer price index for April may also draw some attention. The Commerce Department's business inventories report for March, Fed speeches, the Conference Board's leading economic indicators index for April, announcements concerning the Treasury auctions of 2-year, 5-year and 7-year notes round up the economic events of the week.
In corporate news, Yahoo (YHOO) announced that its board has named Ross Levinsohn as interim CEO, effective immediately, replacing former CEO Scott Thompson, who resigned over the resume padding scandal. The company also replaced Roy Bostock with Fred Amoroso as Chairman. The company also said it has reached an agreement with Third Point to settle its pending proxy contest.
Avon's (AVP) board said it would consider Coty's revised offer communicated through the letter dated May 9th and respond within a week.
Cabot (CBT) announced a 2 cents increase in its quarterly dividend to 20 cents per share.
Agilent (A), JDA Software (JDAS) and Groupon (GRPN) are among the companies due to release their quarterly results after the markets close.
The major Asian markets closed Monday's session on a mixed note, with the Japanese, Australian and New Zealand markets closing higher, while the rest of the markets closed lower. The underlying mood was cautious, as traders looked ahead to the Eurogroup ministers' meeting scheduled for later in the global trading day.
The Chinese central bank announced over the weekend that it would lower the reserve requirement for banks by 50 basis points in a bid to inject more liquidity into the system. The move comes after prognostication of weaker growth for the Chinese economy this year.
Japan's Nikkei 225 average added 20.53 points or 0.23 percent before closing at 8,973 and Australia's All Ordinaries closed up 9.20 points or 0.21 percent at 4,342. Modest gains seen among most sectors were offset by the weakness in the material space.
Meanwhile, Hong Kong's Hang Seng Index moved about in a listless manner in the morning before retreating sharply in the afternoon. The index closed down 229.59 points or 1.15 percent at 19,735.
The major European averages are trading notably lower amid multiple negative catalysts confronting the markets.
Fears concerning the Spanish banking system intensified after last Friday's government diktat requesting setting aside of 30 billion euros to cover losses on real estate loans.
Meanwhile, the political stalemate in Greece continues, with the Greek president expected to meet with political parties in a bid to form a new government. Staunch opposition from Alexis Tsipras, the leader of the radical leftist Syriza coalition and the second biggest party, reduces the likelihood of clinching a deal.
Spain sold about 2.90 billion euros in 12 and 19-month bills, close to the higher end of the 2-3 billion euro target. However, demand slackened from the previous auction, while yields were also higher. An Italian bond auction also revealed waning demand for the nation's debt amid the developments brewing in the eurozone.
All eyes are likely to be on the Eurogroup meeting to be held in Vienna, which has among its agenda, discussions on the banking crisis in Spain and the political uncertainty in Greece. Greece is likely to be warned for not setting its house in order, with analysts even broaching the issue of the likelihood of Greece exiting from the eurozone.
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Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.