Stock Futures Fall on Europe Banks     09/07 06:09

   Stock futures slipped to start the holiday-shortened week Tuesday after some 
fresh concerns about the health of European banks rattled overseas markets.

   NEW YORK (AP) -- Stock futures slipped to start the holiday-shortened week 
Tuesday after some fresh concerns about the health of European banks rattled 
overseas markets.

   European markets fell after a report said the continent's major banks have 
more potentially risky government debt on their books than was disclosed during 
stress tests earlier this year.

   The dollar strengthened against the euro and investors bought U.S. Treasurys 
on the new European bank concerns.

   Stocks worldwide dropped during the spring because of worries that mounting 
government debt in Europe would hurt banks' ability to lend and stunt an 
economic recovery on the continent. That, in turn, would drag down a global 
rebound.

   Investors could be taking their cues from overseas because there are few 
domestic economic reports due out this week that could sway traders. A barrage 
of mostly better-than-anticipated economic data sent stocks sharply higher last 
week. The reports helped push major indexes to their first winning week in a 
month.

   The health of the U.S. economy has largely dictated trading since early 
August. Traders looking for new signs of the pace of recovery will get a look 
at regional economic activity when the Federal Reserve releases its beige book 
Wednesday. The Labor Department releases its weekly numbers on unemployment 
benefit claims Thursday.

   Ahead of the opening bell, Dow Jones industrial average futures fell 50, or 
0.5 percent, to 10,386. Standard & Poor's 500 index futures fell 6.70, or 0.6 
percent, to 1,096.80, while Nasdaq 100 index futures fell 8.00, or 0.4 percent, 
to 1,859.00.

   Britain's FTSE 100 fell 1 percent, Germany's DAX index dropped 0.9 percent, 
and France's CAC-40 fell 1.4 percent. Japan's Nikkei stock average fell 0.8 
percent.

   With investors worldwide moving out of stocks, U.S. bond prices climbed. 
That sent interest rates lower.

   The yield on the 10-year Treasury note, which moves opposite its price, fell 
to 2.65 percent from 2.71 percent late Friday. Its yield is often used as a 
gauge to set interest rates on mortgages and other consumer loans.


(KM)