Morning Wire -- US Stock-Index Futures Drop

US index futures are falling this morning following a refusal by the Group of 20 (G20) to boost the IMF’s funding for bailing out faltering European economies. The decision forces Germany’s hand because that country has been the largest contributor to the European Central Bank’s bailout fund. And Germany has been reluctant to put up more cash. In Asia, markets were mixed today as Japan and Hong Kong have reacted negatively to the news from Europe, while Shanghai rose slightly as investors continue to react positively to last week’s easing of lending requirements in China.

At about 8:30 a.m. ET, Germany’s DAX is dowen -1.07% at 6,790.72 and France’s CAC 40 is down -1.19%, at 3,425.68. In London, the FTSE 100 is down -0.93%, at 5,880.13.

In Asia, the Hang Seng index closed down -0.88%, at 21,217.90 and the Nikkei index closed down -0.14%, at 9,633.93. The Shanghai exchange closed up 0.30%, at 2,447.06.

Dow futures are down -0.37%, at 12,913.00. The Nasdaq 100 is down -0.37%, at 2,591.75 and the S&P is down -0.45%, at 1,357.20.

In the currency markets, the US dollar is stronger against the euro and the British pound, but weaker versus the Japanese yen. The US dollar index is up 0.26% at 78.606.

In commodities, WTI and Brent crude are lower this morning, with WTI down -0.91% at $108.77/barrel and Brent is down -1.02% at $124.19/barrel. Gold is down -0.41% this morning, at $1,769.20/ounce.

Paul Ausick