BLBG:U.S Stock Futures Drop as G20 Snubs Euro-Area Funds Call
U.S. stock-index futures fell, signaling the Standard & Poor’s 500 Index will snap a two-day rally after the Group of 20 snubbed calls to boost the International Monetary Fund’s resources to fight the euro-area debt crisis.
Exxon Mobil Corp (XOM), the biggest U.S. oil producer, pared earlier losses, slipping 0.1 percent in Frankfurt as oil prices retreated. Schlumberger Ltd. (SLB), the U.S. oil-service company, fell 0.7 percent.
S&P 500 Index futures expiring in March declined 0.5 percent to 1,356.50 at 11:22 a.m. in London. Dow Jones Industrial Average futures decreased 55 points, or 0.4 percent, to 12,906. The S&P 500 rose to the highest level since 2008 last week, after Greece got a bailout and better-than-expected data on consumer sentiment and home sales boosted confidence in the world’s largest economy. A 24 percent rally since October has restored $3.2 trillion to American equity values.
G-20 officials told the euro area’s political leaders to provide more financial firepower before they consider lending outside support, putting the funding onus on Germany, already the biggest national contributor to the bailouts.
The world economy is “not out of the danger zone” amid fragile financial systems, high debt and rising world oil prices, IMF Managing Director Christine Lagarde said.
Exxon, ConocoPhilips
Exxon Mobil and ConocoPhilips, the biggest and third- largest U.S. oil producers, lost 0.1 percent to $87.29 and 0.3 percent to $75.71, respectively in German trading. Schlumberger dropped 0.7 percent to $79.30.
Oil fell from the highest level in more than nine months as investors speculated prices may have climbed too far after the IMF warned that the global economy is at risk of a slowdown. Prices gained the most in two months last week as sanctions tightened against Iran, OPEC’s second-biggest producer.
A report from the National Association of Realtors due today at 10:00 a.m. in Washington may show the number of Americans signing contracts to buy previously owned homes rose 1 percent in January, indicating the stabilization in the market that began in late 2011 will extend into the new year.
To contact the reporter on this story: Peter Levring in Copenhagen at plevring1@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net