FXstreet.com (Barcelona) - US stock futures are showing deep losses upon opening bell on Wall Street, as equity markets worldwide plummet on resurfacing euro zone debt concerns and political tensions in the Korean Peninsula. Close to an hour before open, the DOW is off more than 200 points or 2.09% while the S&P 500 and NASDAQ follow suit at 2.35% and 2.17% lower respectively.
With consumer confidence once again depleted, investors are hedging exposure to risky assets and instead turning to the safety of US treasuries and the dollar. Within the euro zone, uncertainty over banks’ solvency is plaguing the market after the Bank of Spain took over savings entity CajaSur over the weekend. While governments attempting to take back control of the debt problem is seen as positive in the long-term, the needed reforms are expected to subdue economic recovery into the near future.
